As of June 8, 2025, Reditus Sociedade Gestora de Participacoes Sociais SA's estimated intrinsic value ranges from $0.02 to $10.89 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1.08 | +2893.4% |
| Discounted Cash Flow (5Y) | $0.60 | +1570.3% |
| Dividend Discount Model (Multi-Stage) | $0.02 | -42.9% |
| Dividend Discount Model (Stable) | $0.18 | +410.9% |
| Earnings Power Value | $10.89 | +30160.1% |
Is Reditus Sociedade Gestora de Participacoes Sociais SA (RED.LS) 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 Reditus Sociedade Gestora de Participacoes Sociais 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 | 2.9% | 3.4% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 6.9 | 46.59 |
| Cost of equity | 50.1% | 369.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 21.0% | 21.0% |
| Debt/Equity ratio | 105.44 | 105.44 |
| After-tax WACC | 4.4% | 7.4% |
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 | $1 | $58M | 81.2% |
| 10-Year Growth | $1 | $65M | 64.2% |
| 5-Year EBITDA | $(1,234) | $38M | 71.5% |
| 10-Year EBITDA | $(1,234) | $47M | 50.5% |
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 | $11M |
| Discount Rate (WACC) | 7.4% - 4.4% |
| Enterprise Value | $156M - $262M |
| Net Debt | $49M |
| Equity Value | $106M - $213M |
| Outstanding Shares | 15M |
| Fair Value | $7 - $15 |
| Selected Fair Value | $10.89 |
| Metric | Value |
|---|---|
| Market Capitalization | $1M |
| Enterprise Value | $50M |
| Trailing P/E | 0.20 |
| Forward P/E | 0.23 |
| Trailing EV/EBITDA | 8.05 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 105.44 |
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% | $0.32 |
| Discounted Cash Flow (5Y) | 25% | $0.15 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.00 |
| Dividend Discount Model (Stable) | 15% | $0.03 |
| Earnings Power Value | 10% | $1.09 |
| Weighted Average | 100% | $1.59 |
Based on our comprehensive valuation analysis, Reditus Sociedade Gestora de Participacoes Sociais SA's weighted average intrinsic value is $1.59, which is approximately 4329.7% above the current market price of $0.04.
Key investment considerations:
Given these factors, we believe Reditus Sociedade Gestora de Participacoes Sociais SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.