What is PEGYO.IS's Intrinsic value?

Pera Gayrimenkul Yatirim Ortakligi AS (PEGYO.IS) Intrinsic Value Analysis

Executive Summary

As of June 12, 2025, Pera Gayrimenkul Yatirim Ortakligi AS's estimated intrinsic value ranges from $0.03 to $0.03 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.03 -97.9%

Is Pera Gayrimenkul Yatirim Ortakligi AS (PEGYO.IS) undervalued or overvalued?

With the current market price at $1.19, 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 Pera Gayrimenkul Yatirim Ortakligi AS'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 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.42 0.54
Cost of equity 25.6% 28.4%
Cost of debt 7.0% 16.2%
Tax rate 21.2% 22.0%
Debt/Equity ratio 0.03 0.03
After-tax WACC 25.0% 27.9%

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 $0M
Discount Rate (WACC) 27.9% - 25.0%
Enterprise Value $1M - $1M
Net Debt $(3)M
Equity Value $4M - $4M
Outstanding Shares 143M
Fair Value $0 - $0
Selected Fair Value $0.03

Key Financial Metrics

Metric Value
Market Capitalization $170M
Enterprise Value $167M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 14.20
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.03

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% $0.00
Weighted Average 100% $0.03

Investment Conclusion

Based on our comprehensive valuation analysis, Pera Gayrimenkul Yatirim Ortakligi AS's weighted average intrinsic value is $0.03, which is approximately 97.9% below the current market price of $1.19.

Key investment considerations:

  • Strong projected earnings growth (-85% to -50% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.03)

Given these factors, we believe Pera Gayrimenkul Yatirim Ortakligi AS is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.