As of May 29, 2025, Thorne Healthtech Inc's estimated intrinsic value ranges from $0.48 to $12.17 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $12.17 | +19.4% |
| Discounted Cash Flow (5Y) | $7.85 | -22.9% |
| Dividend Discount Model (Multi-Stage) | $9.50 | -6.7% |
| Dividend Discount Model (Stable) | $9.34 | -8.3% |
| Earnings Power Value | $0.48 | -95.3% |
Is Thorne Healthtech Inc (THRN) undervalued or overvalued?
With the current market price at $10.19, the stock appears to be moderately overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Thorne Healthtech Inc'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 | 0.64 | 0.77 |
| Cost of equity | 6.8% | 9.2% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 4.6% | 7.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| After-tax WACC | 6.7% | 9.0% |
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 | $8 | $436M | 87.6% |
| 10-Year Growth | $12 | $669M | 74.6% |
| 5-Year EBITDA | $8 | $427M | 87.3% |
| 10-Year EBITDA | $11 | $593M | 71.4% |
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 | $3M |
| Discount Rate (WACC) | 9.0% - 6.7% |
| Enterprise Value | $32M - $43M |
| Net Debt | $11M |
| Equity Value | $20M - $31M |
| Outstanding Shares | 54M |
| Fair Value | $0 - $1 |
| Selected Fair Value | $0.48 |
| Metric | Value |
|---|---|
| Market Capitalization | $551M |
| Enterprise Value | $562M |
| Trailing P/E | 27.09 |
| Forward P/E | 46.18 |
| Trailing EV/EBITDA | 10.55 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.03 |
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% | $3.65 |
| Discounted Cash Flow (5Y) | 25% | $1.96 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.90 |
| Dividend Discount Model (Stable) | 15% | $1.40 |
| Earnings Power Value | 10% | $0.05 |
| Weighted Average | 100% | $8.96 |
Based on our comprehensive valuation analysis, Thorne Healthtech Inc's weighted average intrinsic value is $8.96, which is approximately 12.0% below the current market price of $10.19.
Key investment considerations:
Given these factors, we believe Thorne Healthtech Inc is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.