As of June 13, 2025, Powersoft SpA's estimated intrinsic value ranges from $12.30 to $29.97 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $29.97 | +56.5% |
| Discounted Cash Flow (5Y) | $22.68 | +18.4% |
| Dividend Discount Model (Multi-Stage) | $25.41 | +32.7% |
| Dividend Discount Model (Stable) | $19.42 | +1.4% |
| Earnings Power Value | $12.30 | -35.8% |
Is Powersoft SpA (PWS.MI) undervalued or overvalued?
With the current market price at $19.15, 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 Powersoft 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 | 0.45 | 0.63 |
| Cost of equity | 7.4% | 10.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 25.9% | 27.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 7.4% | 10.5% |
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 | $23 | $280M | 76.7% |
| 10-Year Growth | $30 | $372M | 63.3% |
| 5-Year EBITDA | $14 | $174M | 62.4% |
| 10-Year EBITDA | $20 | $242M | 43.7% |
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 | $13M |
| Discount Rate (WACC) | 10.5% - 7.4% |
| Enterprise Value | $124M - $176M |
| Net Debt | $(4)M |
| Equity Value | $128M - $180M |
| Outstanding Shares | 13M |
| Fair Value | $10 - $14 |
| Selected Fair Value | $12.30 |
| Metric | Value |
|---|---|
| Market Capitalization | $240M |
| Enterprise Value | $236M |
| Trailing P/E | 19.45 |
| Forward P/E | 17.24 |
| Trailing EV/EBITDA | 5.05 |
| Current Dividend Yield | 452.99% |
| Dividend Growth Rate (5Y) | -29.22% |
| Debt-to-Equity Ratio | 0.01 |
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% | $8.99 |
| Discounted Cash Flow (5Y) | 25% | $5.67 |
| Dividend Discount Model (Multi-Stage) | 20% | $5.08 |
| Dividend Discount Model (Stable) | 15% | $2.91 |
| Earnings Power Value | 10% | $1.23 |
| Weighted Average | 100% | $23.89 |
Based on our comprehensive valuation analysis, Powersoft SpA's weighted average intrinsic value is $23.89, which is approximately 24.7% above the current market price of $19.15.
Key investment considerations:
Given these factors, we believe Powersoft SpA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.