As of May 24, 2025, Rallye SA's estimated intrinsic value ranges from $279.62 to $3361439500000000.00 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $279.62 | +633959.5% |
| Discounted Cash Flow (5Y) | $3361439500000000.00 | +7622311791383219200.0% |
| Earnings Power Value | $1702.16 | +3859680.5% |
Is Rallye SA (RAL.PA) undervalued or overvalued?
With the current market price at $0.04, 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 Rallye 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 | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 349.8 | 439.06 |
| Cost of equity | 2038.8% | 2998.4% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.7% | 33.2% |
| Debt/Equity ratio | 1395.76 | 1395.76 |
| After-tax WACC | 5.5% | 5.5% |
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 | $3,361,438,879,660,169 | $177,920,959,900,415,968M | 86.8% |
| 10-Year Growth | $2,455,565,244,940,981,348,435,977,306,112 | $129,973,068,414,726,144,430,603,891,638,272M | 86.8% |
| 5-Year EBITDA | $158,805,223,375,101 | $8,405,560,473,247,366M | 180.3% |
| 10-Year EBITDA | $104,734,031,690,588,540,807,403,274,240 | $5,543,572,297,382,851,808,863,092,473,856M | 210.5% |
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $5,113M |
| Discount Rate (WACC) | 5.5% - 5.5% |
| Enterprise Value | $93,237M - $93,446M |
| Net Debt | $3,246M |
| Equity Value | $89,991M - $90,200M |
| Outstanding Shares | 53M |
| Fair Value | $1,700 - $1,704 |
| Selected Fair Value | $1702.16 |
| Metric | Value |
|---|---|
| Market Capitalization | $2M |
| Enterprise Value | $3248M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 5.70 |
| Current Dividend Yield | 149957.06% |
| Dividend Growth Rate (5Y) | -8.41% |
| Debt-to-Equity Ratio | 1395.76 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 46% | $83.89 |
| Discounted Cash Flow (5Y) | 38% | $840359875000000.00 |
| Earnings Power Value | 15% | $170.22 |
| Weighted Average | 100% | $1292861346154237.00 |
Based on our comprehensive valuation analysis, Rallye SA's weighted average intrinsic value is $1292861346154237.00, which is approximately 2931658381302124544.0% above the current market price of $0.04.
Key investment considerations:
Given these factors, we believe Rallye SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.