As of June 16, 2025, Readly International AB (publ)'s estimated intrinsic value ranges from $19.63 to $41.27 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $41.27 | +55.8% |
| Discounted Cash Flow (5Y) | $19.63 | -25.9% |
| Dividend Discount Model (Multi-Stage) | $20.96 | -20.9% |
| Dividend Discount Model (Stable) | $41.26 | +55.7% |
| Earnings Power Value | $35.09 | +32.4% |
Is Readly International AB (publ) (READ.ST) undervalued or overvalued?
With the current market price at $26.50, the stock appears to be moderately 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 Readly International AB (publ)'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 | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.58 | 0.77 |
| Cost of equity | 5.5% | 8.2% |
| Cost of debt | 4.0% | 6.6% |
| Tax rate | 0.9% | 2.4% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 5.5% | 8.2% |
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 | $20 | $1,079M | 84.0% |
| 10-Year Growth | $41 | $2,382M | 74.6% |
| 5-Year EBITDA | $22 | $1,201M | 85.6% |
| 10-Year EBITDA | $42 | $2,403M | 74.8% |
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 | $132M |
| Discount Rate (WACC) | 8.2% - 5.5% |
| Enterprise Value | $1,601M - $2,417M |
| Net Debt | $(103)M |
| Equity Value | $1,704M - $2,520M |
| Outstanding Shares | 60M |
| Fair Value | $28 - $42 |
| Selected Fair Value | $35.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $1595M |
| Enterprise Value | $1492M |
| Trailing P/E | 14.87 |
| Forward P/E | 91.28 |
| Trailing EV/EBITDA | 12.30 |
| Current Dividend Yield | 415.80% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.00 |
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% | $12.38 |
| Discounted Cash Flow (5Y) | 25% | $4.91 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.19 |
| Dividend Discount Model (Stable) | 15% | $6.19 |
| Earnings Power Value | 10% | $3.51 |
| Weighted Average | 100% | $31.18 |
Based on our comprehensive valuation analysis, Readly International AB (publ)'s weighted average intrinsic value is $31.18, which is approximately 17.7% above the current market price of $26.50.
Key investment considerations:
Given these factors, we believe Readly International AB (publ) is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.