What is NUS's Intrinsic value?

NU Skin Enterprises Inc (NUS) Intrinsic Value Analysis

Executive Summary

As of June 10, 2025, NU Skin Enterprises Inc's estimated intrinsic value ranges from $23.84 to $23.84 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $23.84 +196.5%

Is NU Skin Enterprises Inc (NUS) undervalued or overvalued?

With the current market price at $8.04, 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 NU Skin Enterprises 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 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.34 0.55
Cost of equity 5.4% 8.0%
Cost of debt 5.3% 20.9%
Tax rate 22.3% 29.9%
Debt/Equity ratio 1.03 1.03
After-tax WACC 4.8% 11.3%

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 $82M
Discount Rate (WACC) 11.3% - 4.8%
Enterprise Value $719M - $1,707M
Net Debt $35M
Equity Value $684M - $1,672M
Outstanding Shares 49M
Fair Value $14 - $34
Selected Fair Value $23.84

Key Financial Metrics

Metric Value
Market Capitalization $397M
Enterprise Value $432M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 5.10
Current Dividend Yield 304.99%
Dividend Growth Rate (5Y) -37.55%
Debt-to-Equity Ratio 1.03

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% $2.38
Weighted Average 100% $23.84

Investment Conclusion

Based on our comprehensive valuation analysis, NU Skin Enterprises Inc's weighted average intrinsic value is $23.84, which is approximately 196.5% above the current market price of $8.04.

Key investment considerations:

  • Strong projected earnings growth (-8% to -1% margin)
  • Consistent cash flow generation

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