As of May 22, 2025, TWC Enterprises Ltd's estimated intrinsic value ranges from $17.68 to $24.74 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $21.15 | +15.6% |
| Discounted Cash Flow (5Y) | $17.68 | -3.4% |
| Dividend Discount Model (Multi-Stage) | $19.73 | +7.8% |
| Dividend Discount Model (Stable) | $19.32 | +5.6% |
| Earnings Power Value | $24.74 | +35.2% |
Is TWC Enterprises Ltd (TWC.TO) undervalued or overvalued?
With the current market price at $18.30, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate TWC Enterprises Ltd'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 | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.7 | 0.89 |
| Cost of equity | 6.7% | 9.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 29.0% | 31.3% |
| Debt/Equity ratio | 0.06 | 0.06 |
| After-tax WACC | 6.5% | 9.2% |
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 | $18 | $404M | 71.3% |
| 10-Year Growth | $21 | $488M | 53.7% |
| 5-Year EBITDA | $24 | $548M | 78.9% |
| 10-Year EBITDA | $26 | $613M | 63.2% |
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 | $44M |
| Discount Rate (WACC) | 9.2% - 6.5% |
| Enterprise Value | $477M - $675M |
| Net Debt | $(27)M |
| Equity Value | $504M - $702M |
| Outstanding Shares | 24M |
| Fair Value | $21 - $29 |
| Selected Fair Value | $24.74 |
| Metric | Value |
|---|---|
| Market Capitalization | $446M |
| Enterprise Value | $419M |
| Trailing P/E | 10.92 |
| Forward P/E | 10.89 |
| Trailing EV/EBITDA | 8.10 |
| Current Dividend Yield | 155.55% |
| Dividend Growth Rate (5Y) | 34.70% |
| Debt-to-Equity Ratio | 0.06 |
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% | $6.34 |
| Discounted Cash Flow (5Y) | 25% | $4.42 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.95 |
| Dividend Discount Model (Stable) | 15% | $2.90 |
| Earnings Power Value | 10% | $2.47 |
| Weighted Average | 100% | $20.08 |
Based on our comprehensive valuation analysis, TWC Enterprises Ltd's weighted average intrinsic value is $20.08, which is approximately 9.7% above the current market price of $18.30.
Key investment considerations:
Given these factors, we believe TWC Enterprises Ltd is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.