What is NSHS.CN's Intrinsic value?

Nanosphere Health Sciences Inc (NSHS.CN) Intrinsic Value Analysis

Executive Summary

As of May 25, 2025, Nanosphere Health Sciences Inc's estimated intrinsic value ranges from $0.59 to $0.59 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $0.59 +1571.7%

Is Nanosphere Health Sciences Inc (NSHS.CN) undervalued or overvalued?

With the current market price at $0.04, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Nanosphere Health Sciences Inc's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

Weighted Average Cost of Capital (WACC)

The cost of capital is a critical factor in valuation models, representing the required return for investors.

WACC Component Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.33 0.49
Cost of equity 4.8% 7.1%
Cost of debt 5.0% 5.0%
Tax rate 25.9% 26.5%
Debt/Equity ratio 0.12 0.12
After-tax WACC 4.7% 6.8%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 6.0%
  • Long-term growth rate: 0.5%
  • Fair value: $-0.50 (-1520.8% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 7.1% (Low) to 4.8% (High)
  • Long-term growth rate: 0.0% (Low) to 1.0% (High)
  • Fair value range: $0 to $1
  • Selected fair value: $0.59 (1571.7% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $0M
Trailing P/E 0.99
Forward P/E 0.99
Trailing EV/EBITDA 0.00
Current Dividend Yield 58.51%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.12

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Dividend Discount Model (Stable) 100% $0.09
Weighted Average 100% $0.59

Investment Conclusion

Based on our comprehensive valuation analysis, Nanosphere Health Sciences Inc's weighted average intrinsic value is $0.59, which is approximately 1571.7% above the current market price of $0.04.

Key investment considerations:

  • Strong projected earnings growth (-1492% to -1096% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.12)

Given these factors, we believe Nanosphere Health Sciences Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.