What is SNTA.NE's Intrinsic value?

Strategic Minerals Europe Corp (SNTA.NE) Intrinsic Value Analysis

Executive Summary

As of June 9, 2025, Strategic Minerals Europe Corp's estimated intrinsic value ranges from $0.15 to $0.15 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.15 +2979.1%

Is Strategic Minerals Europe Corp (SNTA.NE) undervalued or overvalued?

With the current market price at $0.01, 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 Strategic Minerals Europe Corp's intrinsic value, including:

  1. 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 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.85 2.48
Cost of equity 12.6% 19.3%
Cost of debt 5.0% 5.0%
Tax rate 25.9% 26.5%
Debt/Equity ratio 3.9 3.9
After-tax WACC 5.5% 6.9%

Valuation Methods

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 $3M
Discount Rate (WACC) 6.9% - 5.5%
Enterprise Value $38M - $47M
Net Debt $5M
Equity Value $32M - $41M
Outstanding Shares 240M
Fair Value $0 - $0
Selected Fair Value $0.15

Key Financial Metrics

Metric Value
Market Capitalization $1M
Enterprise Value $7M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 9.45
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 3.90

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
Earnings Power Value 100% $0.02
Weighted Average 100% $0.15

Investment Conclusion

Based on our comprehensive valuation analysis, Strategic Minerals Europe Corp's weighted average intrinsic value is $0.15, which is approximately 2979.1% above the current market price of $0.01.

Key investment considerations:

  • Strong projected earnings growth (-132% to -87% margin)
  • Consistent cash flow generation

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