As of July 1, 2025, Centurion Corporation Ltd's estimated intrinsic value ranges from $1.48 to $7.81 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2.88 | +71.5% |
| Discounted Cash Flow (5Y) | $2.08 | +23.9% |
| Dividend Discount Model (Multi-Stage) | $7.81 | +365.1% |
| Dividend Discount Model (Stable) | $7.13 | +324.4% |
| Earnings Power Value | $1.48 | -11.7% |
Is Centurion Corporation Ltd (OU8.SI) undervalued or overvalued?
With the current market price at $1.68, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Centurion Corporation Ltd'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 | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.49 | 0.55 |
| Cost of equity | 5.2% | 7.1% |
| Cost of debt | 4.1% | 4.5% |
| Tax rate | 14.7% | 18.7% |
| Debt/Equity ratio | 0.57 | 0.57 |
| After-tax WACC | 4.6% | 5.8% |
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 | $2 | $2,468M | 81.8% |
| 10-Year Growth | $3 | $3,141M | 70.4% |
| 5-Year EBITDA | $2 | $2,495M | 82.0% |
| 10-Year EBITDA | $3 | $3,177M | 70.7% |
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 | $101M |
| Discount Rate (WACC) | 5.8% - 4.6% |
| Enterprise Value | $1,732M - $2,197M |
| Net Debt | $718M |
| Equity Value | $1,014M - $1,479M |
| Outstanding Shares | 841M |
| Fair Value | $1 - $2 |
| Selected Fair Value | $1.48 |
| Metric | Value |
|---|---|
| Market Capitalization | $1413M |
| Enterprise Value | $2131M |
| Trailing P/E | 4.10 |
| Forward P/E | 3.74 |
| Trailing EV/EBITDA | 12.40 |
| Current Dividend Yield | 179.64% |
| Dividend Growth Rate (5Y) | 31.60% |
| Debt-to-Equity Ratio | 0.57 |
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% | $0.86 |
| Discounted Cash Flow (5Y) | 25% | $0.52 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.56 |
| Dividend Discount Model (Stable) | 15% | $1.07 |
| Earnings Power Value | 10% | $0.15 |
| Weighted Average | 100% | $4.17 |
Based on our comprehensive valuation analysis, Centurion Corporation Ltd's weighted average intrinsic value is $4.17, which is approximately 147.9% above the current market price of $1.68.
Key investment considerations:
Given these factors, we believe Centurion Corporation Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.