As of May 27, 2025, Oppenheimer Holdings Inc's estimated intrinsic value ranges from $4.10 to $130.71 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $70.73 | +10.6% |
| Discounted Cash Flow (5Y) | $4.10 | -93.6% |
| Dividend Discount Model (Multi-Stage) | $76.45 | +19.5% |
| Dividend Discount Model (Stable) | $78.15 | +22.2% |
| Earnings Power Value | $130.71 | +104.3% |
Is Oppenheimer Holdings Inc (OPY) undervalued or overvalued?
With the current market price at $63.97, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Oppenheimer Holdings Inc's intrinsic value, including:
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 | 1.06 | 1.43 |
| Cost of equity | 8.7% | 12.9% |
| Cost of debt | 7.5% | 9.6% |
| Tax rate | 29.4% | 30.8% |
| Debt/Equity ratio | 1.9 | 1.9 |
| After-tax WACC | 6.5% | 8.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $4 | $1,510M | 73.4% |
| 10-Year Growth | $71 | $2,212M | 63.2% |
| 5-Year EBITDA | $61 | $2,110M | 81.0% |
| 10-Year EBITDA | $105 | $2,569M | 68.4% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $212M |
| Discount Rate (WACC) | 8.8% - 6.5% |
| Enterprise Value | $2,413M - $3,274M |
| Net Debt | $1,467M |
| Equity Value | $946M - $1,807M |
| Outstanding Shares | 11M |
| Fair Value | $90 - $172 |
| Selected Fair Value | $130.71 |
| Metric | Value |
|---|---|
| Market Capitalization | $674M |
| Enterprise Value | $2141M |
| Trailing P/E | 8.84 |
| Forward P/E | 8.68 |
| Trailing EV/EBITDA | 8.55 |
| Current Dividend Yield | 106.35% |
| Dividend Growth Rate (5Y) | -22.11% |
| Debt-to-Equity Ratio | 1.90 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $21.22 |
| Discounted Cash Flow (5Y) | 25% | $1.03 |
| Dividend Discount Model (Multi-Stage) | 20% | $15.29 |
| Dividend Discount Model (Stable) | 15% | $11.72 |
| Earnings Power Value | 10% | $13.07 |
| Weighted Average | 100% | $62.33 |
Based on our comprehensive valuation analysis, Oppenheimer Holdings Inc's weighted average intrinsic value is $62.33, which is approximately 2.6% below the current market price of $63.97.
Key investment considerations:
Given these factors, we believe Oppenheimer Holdings Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.