As of May 25, 2025, United Corporations Ltd's estimated intrinsic value ranges from $178.34 to $408.92 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $408.92 | +210.5% |
| Discounted Cash Flow (5Y) | $375.92 | +185.5% |
| Dividend Discount Model (Multi-Stage) | $178.34 | +35.4% |
| Dividend Discount Model (Stable) | $251.54 | +91.0% |
| Earnings Power Value | $210.20 | +59.6% |
Is United Corporations Ltd (UNC.TO) undervalued or overvalued?
With the current market price at $131.68, 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 United Corporations 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 | 1.52 | 1.54 |
| Cost of equity | 10.9% | 13.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 11.7% | 13.6% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.7% | 8.9% |
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 | $376 | $4,187M | 72.1% |
| 10-Year Growth | $409 | $4,558M | 50.8% |
| 5-Year EBITDA | $781 | $8,742M | 86.7% |
| 10-Year EBITDA | $719 | $8,049M | 72.1% |
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 | $192M |
| Discount Rate (WACC) | 8.9% - 7.7% |
| Enterprise Value | $2,147M - $2,498M |
| Net Debt | $(43)M |
| Equity Value | $2,189M - $2,540M |
| Outstanding Shares | 11M |
| Fair Value | $195 - $226 |
| Selected Fair Value | $210.20 |
| Metric | Value |
|---|---|
| Market Capitalization | $1481M |
| Enterprise Value | $1439M |
| Trailing P/E | 3.73 |
| Forward P/E | 4.83 |
| Trailing EV/EBITDA | 28.10 |
| Current Dividend Yield | 124.11% |
| Dividend Growth Rate (5Y) | -11.45% |
| Debt-to-Equity Ratio | 0.80 |
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% | $122.68 |
| Discounted Cash Flow (5Y) | 25% | $93.98 |
| Dividend Discount Model (Multi-Stage) | 20% | $35.67 |
| Dividend Discount Model (Stable) | 15% | $37.73 |
| Earnings Power Value | 10% | $21.02 |
| Weighted Average | 100% | $311.07 |
Based on our comprehensive valuation analysis, United Corporations Ltd's weighted average intrinsic value is $311.07, which is approximately 136.2% above the current market price of $131.68.
Key investment considerations:
Given these factors, we believe United Corporations Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.