What is OPTI's Intrinsic value?

Optec International Inc (OPTI) Intrinsic Value Analysis

Executive Summary

As of June 13, 2025, Optec International Inc's estimated intrinsic value ranges from $0.00 to $0.00 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (5Y) $0.00 -99.0%

Is Optec International Inc (OPTI) undervalued or overvalued?

With the current market price at $0.00, the stock appears to be significantly overvalued.

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 Optec International Inc's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows

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 0.49 0.85
Cost of equity 6.1% 9.6%
Cost of debt 7.0% 7.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 0.15 0.15
After-tax WACC 6.0% 9.0%

Valuation Methods

1. Discounted Cash Flow (DCF) Valuation

Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:

  • Forecast Period: 5-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 7.5% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $0 (FY06-2018) to $0 (FY06-2028)
  • Net profit margin expansion from -1450% to -19%
  • Capital expenditures maintained at approximately 5% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $0 $1M 81.5%
10-Year Growth $(1,234) $1M 67.3%
5-Year EBITDA $(1,234) $(0)M 543.8%
10-Year EBITDA $(1,234) $0M 120.0%

Key Financial Metrics

Metric Value
Market Capitalization $3M
Enterprise Value $4M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 10.00
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.15

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
Discounted Cash Flow (5Y) 100% $0.00
Weighted Average 100% $0.00

Investment Conclusion

Based on our comprehensive valuation analysis, Optec International Inc's weighted average intrinsic value is $0.00, which is approximately 99.0% below the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (-1450% to -19% margin)
  • Conservative capital structure (Debt/Equity of 0.15)

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