As of May 22, 2025, Uni-Select Inc's estimated intrinsic value ranges from $37.49 to $112.17 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $65.27 | +36.1% |
| Discounted Cash Flow (5Y) | $49.86 | +4.0% |
| Dividend Discount Model (Multi-Stage) | $37.59 | -21.6% |
| Dividend Discount Model (Stable) | $37.49 | -21.8% |
| Earnings Power Value | $112.17 | +133.9% |
Is Uni-Select Inc (UNS.TO) undervalued or overvalued?
With the current market price at $47.96, the stock appears to be moderately 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 Uni-Select 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 | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 0.58 |
| Cost of equity | 5.6% | 7.7% |
| Cost of debt | 4.2% | 5.2% |
| Tax rate | 16.8% | 21.3% |
| Debt/Equity ratio | 0.22 | 0.22 |
| After-tax WACC | 5.2% | 7.1% |
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 | $36 | $1,878M | 79.4% |
| 10-Year Growth | $47 | $2,358M | 65.6% |
| 5-Year EBITDA | $20 | $1,206M | 68.0% |
| 10-Year EBITDA | $30 | $1,624M | 50.0% |
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 | $230M |
| Discount Rate (WACC) | 7.1% - 5.2% |
| Enterprise Value | $3,250M - $4,388M |
| Net Debt | $325M |
| Equity Value | $2,925M - $4,063M |
| Outstanding Shares | 44M |
| Fair Value | $67 - $93 |
| Selected Fair Value | $112.17 |
| Metric | Value |
|---|---|
| Market Capitalization | $2087M |
| Enterprise Value | $2541M |
| Trailing P/E | 20.19 |
| Forward P/E | 19.80 |
| Trailing EV/EBITDA | 7.15 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 0.22 |
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% | $19.58 |
| Discounted Cash Flow (5Y) | 25% | $12.46 |
| Dividend Discount Model (Multi-Stage) | 20% | $7.52 |
| Dividend Discount Model (Stable) | 15% | $5.62 |
| Earnings Power Value | 10% | $11.22 |
| Weighted Average | 100% | $56.40 |
Based on our comprehensive valuation analysis, Uni-Select Inc's weighted average intrinsic value is $56.40, which is approximately 17.6% above the current market price of $47.96.
Key investment considerations:
Given these factors, we believe Uni-Select Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.