As of June 13, 2025, Public Power Corporation SA's estimated intrinsic value ranges from $4.04 to $109.62 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $13.41 | -3.6% |
| Discounted Cash Flow (5Y) | $19.01 | +36.7% |
| Dividend Discount Model (Multi-Stage) | $4.04 | -70.9% |
| Dividend Discount Model (Stable) | $5.28 | -62.0% |
| Earnings Power Value | $109.62 | +688.6% |
Is Public Power Corporation SA (PPC.AT) undervalued or overvalued?
With the current market price at $13.90, 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 Public Power Corporation SA'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 | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.77 | 0.86 |
| Cost of equity | 10.1% | 12.7% |
| Cost of debt | 4.3% | 5.1% |
| Tax rate | 23.2% | 24.0% |
| Debt/Equity ratio | 1.51 | 1.51 |
| After-tax WACC | 6.0% | 7.4% |
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 | $19 | $11,878M | 84.6% |
| 10-Year Growth | $13 | $9,810M | 68.1% |
| 5-Year EBITDA | $7 | $7,475M | 75.5% |
| 10-Year EBITDA | $8 | $7,989M | 60.9% |
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 | $2,996M |
| Discount Rate (WACC) | 7.4% - 6.0% |
| Enterprise Value | $40,713M - $49,968M |
| Net Debt | $4,860M |
| Equity Value | $35,853M - $45,108M |
| Outstanding Shares | 369M |
| Fair Value | $97 - $122 |
| Selected Fair Value | $109.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $5133M |
| Enterprise Value | $9993M |
| Trailing P/E | 28.07 |
| Forward P/E | 30.68 |
| Trailing EV/EBITDA | 4.15 |
| Current Dividend Yield | 312.57% |
| Dividend Growth Rate (5Y) | 1883.86% |
| Debt-to-Equity Ratio | 1.51 |
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% | $4.02 |
| Discounted Cash Flow (5Y) | 25% | $4.75 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.81 |
| Dividend Discount Model (Stable) | 15% | $0.79 |
| Earnings Power Value | 10% | $10.96 |
| Weighted Average | 100% | $21.34 |
Based on our comprehensive valuation analysis, Public Power Corporation SA's weighted average intrinsic value is $21.34, which is approximately 53.5% above the current market price of $13.90.
Key investment considerations:
Given these factors, we believe Public Power Corporation SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.