As of June 17, 2025, Smartphoto Group NV's estimated intrinsic value ranges from $28.66 to $124.46 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $42.15 | +47.4% |
| Discounted Cash Flow (5Y) | $40.71 | +42.3% |
| Dividend Discount Model (Multi-Stage) | $28.66 | +0.2% |
| Dividend Discount Model (Stable) | $30.85 | +7.9% |
| Earnings Power Value | $124.46 | +335.2% |
Is Smartphoto Group NV (SMAR.BR) undervalued or overvalued?
With the current market price at $28.60, 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 Smartphoto Group NV'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 | 6.0% | 7.0% |
| Adjusted beta | 0.46 | 0.56 |
| Cost of equity | 5.6% | 7.8% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 21.1% | 22.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| After-tax WACC | 5.5% | 7.6% |
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 | $41 | $140M | 79.3% |
| 10-Year Growth | $42 | $146M | 64.0% |
| 5-Year EBITDA | $24 | $73M | 60.4% |
| 10-Year EBITDA | $28 | $89M | 41.2% |
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 | $30M |
| Discount Rate (WACC) | 7.6% - 5.5% |
| Enterprise Value | $395M - $545M |
| Net Debt | $(21)M |
| Equity Value | $416M - $565M |
| Outstanding Shares | 4M |
| Fair Value | $105 - $143 |
| Selected Fair Value | $124.46 |
| Metric | Value |
|---|---|
| Market Capitalization | $113M |
| Enterprise Value | $92M |
| Trailing P/E | 20.78 |
| Forward P/E | 19.13 |
| Trailing EV/EBITDA | 4.90 |
| Current Dividend Yield | 330.75% |
| Dividend Growth Rate (5Y) | 14.90% |
| Debt-to-Equity Ratio | 0.04 |
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% | $12.64 |
| Discounted Cash Flow (5Y) | 25% | $10.18 |
| Dividend Discount Model (Multi-Stage) | 20% | $5.73 |
| Dividend Discount Model (Stable) | 15% | $4.63 |
| Earnings Power Value | 10% | $12.45 |
| Weighted Average | 100% | $45.63 |
Based on our comprehensive valuation analysis, Smartphoto Group NV's weighted average intrinsic value is $45.63, which is approximately 59.5% above the current market price of $28.60.
Key investment considerations:
Given these factors, we believe Smartphoto Group NV is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.