As of June 17, 2025, Pininfarina SpA's estimated intrinsic value ranges from $0.03 to $1.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $0.51 | -36.3% |
| Discounted Cash Flow (5Y) | $0.41 | -48.8% |
| Dividend Discount Model (Multi-Stage) | $0.11 | -86.3% |
| Dividend Discount Model (Stable) | $0.03 | -96.5% |
| Earnings Power Value | $1.48 | +86.5% |
Is Pininfarina SpA (PINF.MI) undervalued or overvalued?
With the current market price at $0.80, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Pininfarina SpA'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 | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.61 | 0.99 |
| Cost of equity | 8.8% | 13.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 6.0% | 7.3% |
| Debt/Equity ratio | 0.3 | 0.3 |
| After-tax WACC | 7.6% | 11.6% |
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 | $0 | $24M | 97.8% |
| 10-Year Growth | $1 | $32M | 65.7% |
| 5-Year EBITDA | $0 | $19M | 97.1% |
| 10-Year EBITDA | $0 | $26M | 57.7% |
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 | $10M |
| Discount Rate (WACC) | 11.6% - 7.6% |
| Enterprise Value | $86M - $132M |
| Net Debt | $(8)M |
| Equity Value | $94M - $140M |
| Outstanding Shares | 79M |
| Fair Value | $1 - $2 |
| Selected Fair Value | $1.48 |
| Metric | Value |
|---|---|
| Market Capitalization | $63M |
| Enterprise Value | $55M |
| Trailing P/E | 296.78 |
| Forward P/E | 296.78 |
| Trailing EV/EBITDA | 4.85 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.30 |
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% | $0.15 |
| Discounted Cash Flow (5Y) | 25% | $0.10 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.02 |
| Dividend Discount Model (Stable) | 15% | $0.00 |
| Earnings Power Value | 10% | $0.15 |
| Weighted Average | 100% | $0.43 |
Based on our comprehensive valuation analysis, Pininfarina SpA's weighted average intrinsic value is $0.43, which is approximately 46.2% below the current market price of $0.80.
Key investment considerations:
Given these factors, we believe Pininfarina SpA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.