What is NTN's Intrinsic value?

NTN Buzztime Inc (NTN) Intrinsic Value Analysis

Executive Summary

As of June 14, 2026, NTN Buzztime Inc's estimated intrinsic value ranges from $4.96 to $4.96 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $4.96 +83.7%

Is NTN Buzztime Inc (NTN) undervalued or overvalued?

With the current market price at $2.70, 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 NTN Buzztime Inc's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

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 4.2% 5.2%
Adjusted beta 0.34 0.42
Cost of equity 5.1% 6.9%
Cost of debt 6.1% 7.0%
Tax rate 1.3% 8.7%
Debt/Equity ratio 0.31 0.31
After-tax WACC 5.3% 6.8%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $1M
Discount Rate (WACC) 6.8% - 5.3%
Enterprise Value $16M - $20M
Net Debt $2M
Equity Value $14M - $19M
Outstanding Shares 3M
Fair Value $4 - $6
Selected Fair Value $4.96

Key Financial Metrics

Metric Value
Market Capitalization $9M
Enterprise Value $11M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 1.00
Current Dividend Yield 17.98%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.31

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
Earnings Power Value 100% $0.50
Weighted Average 100% $4.96

Investment Conclusion

Based on our comprehensive valuation analysis, NTN Buzztime Inc's intrinsic value is $4.96, which is approximately 83.7% above the current market price of $2.70.

Key investment considerations:

  • Strong projected earnings growth (-10% to 0% margin)

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