As of June 4, 2025, Middlefield Can-Global REIT Income Fund's estimated intrinsic value ranges from $3.83 to $31.93 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $19.44 | +62.0% |
| Discounted Cash Flow (5Y) | $17.68 | +47.3% |
| Dividend Discount Model (Multi-Stage) | $31.93 | +166.1% |
| Dividend Discount Model (Stable) | $3.83 | -68.1% |
| Earnings Power Value | $8.12 | -32.4% |
Is Middlefield Can-Global REIT Income Fund (RCO.UN.TO) undervalued or overvalued?
With the current market price at $12.00, 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 Middlefield Can-Global REIT Income Fund'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 | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.76 | 0.97 |
| Cost of equity | 6.9% | 9.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 1.7% | 3.1% |
| Debt/Equity ratio | 0.05 | 0.05 |
| After-tax WACC | 6.8% | 9.6% |
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 | $18 | $29M | 71.0% |
| 10-Year Growth | $19 | $32M | 50.4% |
| 5-Year EBITDA | $20 | $34M | 74.8% |
| 10-Year EBITDA | $22 | $36M | 55.2% |
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 | $1M |
| Discount Rate (WACC) | 9.6% - 6.8% |
| Enterprise Value | $11M - $16M |
| Net Debt | $1M |
| Equity Value | $11M - $15M |
| Outstanding Shares | 2M |
| Fair Value | $7 - $10 |
| Selected Fair Value | $8.12 |
| Metric | Value |
|---|---|
| Market Capitalization | $19M |
| Enterprise Value | $20M |
| Trailing P/E | 34.82 |
| Forward P/E | 8.99 |
| Trailing EV/EBITDA | 15.40 |
| Current Dividend Yield | 1775.62% |
| Dividend Growth Rate (5Y) | -9.17% |
| Debt-to-Equity Ratio | 0.05 |
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% | $5.83 |
| Discounted Cash Flow (5Y) | 25% | $4.42 |
| Dividend Discount Model (Multi-Stage) | 20% | $6.39 |
| Dividend Discount Model (Stable) | 15% | $0.57 |
| Earnings Power Value | 10% | $0.81 |
| Weighted Average | 100% | $18.03 |
Based on our comprehensive valuation analysis, Middlefield Can-Global REIT Income Fund's weighted average intrinsic value is $18.03, which is approximately 50.2% above the current market price of $12.00.
Key investment considerations:
Given these factors, we believe Middlefield Can-Global REIT Income Fund is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.