As of May 29, 2025, Standex International Corp's estimated intrinsic value ranges from $46.23 to $259.66 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $259.66 | +71.2% |
| Discounted Cash Flow (5Y) | $204.03 | +34.5% |
| Dividend Discount Model (Multi-Stage) | $191.42 | +26.2% |
| Dividend Discount Model (Stable) | $81.57 | -46.2% |
| Earnings Power Value | $46.23 | -69.5% |
Is Standex International Corp (SXI) undervalued or overvalued?
With the current market price at $151.68, 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 Standex International Corp'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.97 | 1.01 |
| Cost of equity | 8.3% | 10.5% |
| Cost of debt | 4.0% | 4.8% |
| Tax rate | 23.6% | 24.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| After-tax WACC | 7.9% | 10.0% |
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 | $204 | $2,898M | 81.2% |
| 10-Year Growth | $260 | $3,560M | 64.7% |
| 5-Year EBITDA | $187 | $2,691M | 79.8% |
| 10-Year EBITDA | $237 | $3,287M | 61.8% |
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 | $90M |
| Discount Rate (WACC) | 10.0% - 7.9% |
| Enterprise Value | $902M - $1,137M |
| Net Debt | $470M |
| Equity Value | $432M - $668M |
| Outstanding Shares | 12M |
| Fair Value | $36 - $56 |
| Selected Fair Value | $46.23 |
| Metric | Value |
|---|---|
| Market Capitalization | $1805M |
| Enterprise Value | $2275M |
| Trailing P/E | 29.82 |
| Forward P/E | 18.49 |
| Trailing EV/EBITDA | 10.90 |
| Current Dividend Yield | 84.83% |
| Dividend Growth Rate (5Y) | 6.99% |
| Debt-to-Equity Ratio | 0.09 |
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% | $77.90 |
| Discounted Cash Flow (5Y) | 25% | $51.01 |
| Dividend Discount Model (Multi-Stage) | 20% | $38.28 |
| Dividend Discount Model (Stable) | 15% | $12.24 |
| Earnings Power Value | 10% | $4.62 |
| Weighted Average | 100% | $184.05 |
Based on our comprehensive valuation analysis, Standex International Corp's weighted average intrinsic value is $184.05, which is approximately 21.3% above the current market price of $151.68.
Key investment considerations:
Given these factors, we believe Standex International Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.