As of June 7, 2025, R C M Technologies Inc's estimated intrinsic value ranges from $27.88 to $46.10 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $46.10 | +97.4% |
| Discounted Cash Flow (5Y) | $33.25 | +42.4% |
| Dividend Discount Model (Multi-Stage) | $33.40 | +43.0% |
| Dividend Discount Model (Stable) | $27.88 | +19.4% |
| Earnings Power Value | $37.29 | +59.7% |
Is R C M Technologies Inc (RCMT) undervalued or overvalued?
With the current market price at $23.35, 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 R C M Technologies 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 | 0.37 | 0.72 |
| Cost of equity | 5.6% | 8.9% |
| Cost of debt | 4.8% | 6.2% |
| Tax rate | 25.5% | 26.5% |
| Debt/Equity ratio | 0.22 | 0.22 |
| After-tax WACC | 5.2% | 8.1% |
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 | $33 | $266M | 77.5% |
| 10-Year Growth | $46 | $361M | 63.6% |
| 5-Year EBITDA | $36 | $289M | 79.3% |
| 10-Year EBITDA | $46 | $358M | 63.3% |
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 | $19M |
| Discount Rate (WACC) | 8.1% - 5.2% |
| Enterprise Value | $232M - $359M |
| Net Debt | $20M |
| Equity Value | $212M - $339M |
| Outstanding Shares | 7M |
| Fair Value | $29 - $46 |
| Selected Fair Value | $37.29 |
| Metric | Value |
|---|---|
| Market Capitalization | $173M |
| Enterprise Value | $192M |
| Trailing P/E | 12.72 |
| Forward P/E | 10.18 |
| Trailing EV/EBITDA | 9.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.22 |
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% | $13.83 |
| Discounted Cash Flow (5Y) | 25% | $8.31 |
| Dividend Discount Model (Multi-Stage) | 20% | $6.68 |
| Dividend Discount Model (Stable) | 15% | $4.18 |
| Earnings Power Value | 10% | $3.73 |
| Weighted Average | 100% | $36.73 |
Based on our comprehensive valuation analysis, R C M Technologies Inc's weighted average intrinsic value is $36.73, which is approximately 57.3% above the current market price of $23.35.
Key investment considerations:
Given these factors, we believe R C M Technologies Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.