What is RINO's Intrinsic value?

RINO International Corp (RINO) Intrinsic Value Analysis

Executive Summary

As of June 10, 2025, RINO International Corp's estimated intrinsic value ranges from $1.54 to $398.49 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $398.49 +39848499900.0%
Dividend Discount Model (Stable) $27.61 +2761352900.0%
Earnings Power Value $1.54 +153889900.0%

Is RINO International Corp (RINO) undervalued or overvalued?

With the current market price at $0.00, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate RINO International Corp's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows
  2. Dividend Discount Model (DDM): Values the company based on expected future dividend payments
  3. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 0.51 0.9
Cost of equity 6.2% 9.9%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 1 1
After-tax WACC 4.9% 6.8%

Valuation Methods

1. Discounted Cash Flow (DCF) Valuation

Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:

  • Forecast Period: 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 5.9% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $193 (FY12-2009) to $8,350 (FY12-2019)
  • Net profit margin expansion from 29% to 35%
  • Capital expenditures maintained at approximately 35% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $(1,234) $(56)M 3.9%
10-Year Growth $398 $159,359M 98.2%
5-Year EBITDA $9 $3,680M 101.5%
10-Year EBITDA $52 $20,961M 86.6%

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 8.1%
  • Long-term growth rate: 0.5%
  • Fair value: $-0.02 (-1611671.4% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 9.9% (Low) to 6.2% (High)
  • Long-term growth rate: 0.0% (Low) to 1.0% (High)
  • Fair value range: $16 to $39
  • Selected fair value: $27.61 (2761352900.0% from current price)

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $23M
Discount Rate (WACC) 3.7% - 4.1%
Enterprise Value $605M - $557M
Net Debt $(35)M
Equity Value $640M - $591M
Outstanding Shares 400M
Fair Value $2 - $1
Selected Fair Value $1.54

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $-35M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 5.55
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 751505.70

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Discounted Cash Flow (10Y) 55% $119.55
Dividend Discount Model (Stable) 27% $4.14
Earnings Power Value 18% $0.15
Weighted Average 100% $225.17

Investment Conclusion

Based on our comprehensive valuation analysis, RINO International Corp's weighted average intrinsic value is $225.17, which is approximately 22516621627.3% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (29% to 35% margin)
  • Consistent cash flow generation

Given these factors, we believe RINO International Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.