As of June 22, 2025, QEP Co Inc's estimated intrinsic value ranges from $24.67 to $196.96 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $43.52 | +14.5% |
| Discounted Cash Flow (5Y) | $44.04 | +15.9% |
| Dividend Discount Model (Multi-Stage) | $24.67 | -35.1% |
| Dividend Discount Model (Stable) | $37.58 | -1.1% |
| Earnings Power Value | $196.96 | +418.3% |
Is QEP Co Inc (QEPC) undervalued or overvalued?
With the current market price at $38.00, 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 QEP Co Inc'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.77 | 0.84 |
| Cost of equity | 7.4% | 9.6% |
| Cost of debt | 4.5% | 4.5% |
| Tax rate | 23.4% | 24.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 7.4% | 9.5% |
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 | $44 | $110M | 68.7% |
| 10-Year Growth | $44 | $108M | 45.9% |
| 5-Year EBITDA | $37 | $86M | 60.2% |
| 10-Year EBITDA | $40 | $96M | 38.9% |
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 | $51M |
| Discount Rate (WACC) | 9.5% - 7.4% |
| Enterprise Value | $532M - $688M |
| Net Debt | $(34)M |
| Equity Value | $566M - $722M |
| Outstanding Shares | 3M |
| Fair Value | $173 - $221 |
| Selected Fair Value | $196.96 |
| Metric | Value |
|---|---|
| Market Capitalization | $124M |
| Enterprise Value | $90M |
| Trailing P/E | 10.83 |
| Forward P/E | 17.23 |
| Trailing EV/EBITDA | 5.60 |
| Current Dividend Yield | 527.52% |
| Dividend Growth Rate (5Y) | 217.42% |
| 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% | $13.06 |
| Discounted Cash Flow (5Y) | 25% | $11.01 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.93 |
| Dividend Discount Model (Stable) | 15% | $5.64 |
| Earnings Power Value | 10% | $19.70 |
| Weighted Average | 100% | $54.33 |
Based on our comprehensive valuation analysis, QEP Co Inc's weighted average intrinsic value is $54.33, which is approximately 43.0% above the current market price of $38.00.
Key investment considerations:
Given these factors, we believe QEP Co Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.