What is RAKE.ST's Intrinsic value?

Raketech Group Holding PLC (RAKE.ST) Intrinsic Value Analysis

Executive Summary

As of June 18, 2025, Raketech Group Holding PLC's estimated intrinsic value ranges from $58.04 to $58.04 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $58.04 +1874.0%

Is Raketech Group Holding PLC (RAKE.ST) undervalued or overvalued?

With the current market price at $2.94, the stock appears to be significantly undervalued.

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 Raketech Group Holding PLC'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 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.42 0.54
Cost of equity 5.1% 7.3%
Cost of debt 7.6% 7.8%
Tax rate 7.2% 9.2%
Debt/Equity ratio 0.2 0.2
After-tax WACC 5.5% 7.3%

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 $15M
Discount Rate (WACC) 7.3% - 5.5%
Enterprise Value $207M - $276M
Net Debt $2M
Equity Value $205M - $274M
Outstanding Shares 45M
Fair Value $5 - $6
Selected Fair Value $58.04

Key Financial Metrics

Metric Value
Market Capitalization $133M
Enterprise Value $154M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 6.60
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.20

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% $5.80
Weighted Average 100% $58.04

Investment Conclusion

Based on our comprehensive valuation analysis, Raketech Group Holding PLC's weighted average intrinsic value is $58.04, which is approximately 1874.0% above the current market price of $2.94.

Key investment considerations:

  • Strong projected earnings growth (-92% to -87% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.20)

Given these factors, we believe Raketech Group Holding PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.