As of June 18, 2025, Value Line Inc's estimated intrinsic value ranges from $6.86 to $29.34 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $7.09 | -81.0% |
| Discounted Cash Flow (5Y) | $6.86 | -81.6% |
| Dividend Discount Model (Multi-Stage) | $22.19 | -40.5% |
| Dividend Discount Model (Stable) | $29.34 | -21.3% |
| Earnings Power Value | $14.89 | -60.1% |
Is Value Line Inc (VALU) undervalued or overvalued?
With the current market price at $37.27, the stock appears to be significantly 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 Value Line 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 | 0.88 | 1.03 |
| Cost of equity | 7.9% | 10.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 23.7% | 24.2% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.9% | 7.2% |
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 | $7 | $64M | 82.5% |
| 10-Year Growth | $7 | $66M | 66.3% |
| 5-Year EBITDA | $11 | $105M | 89.4% |
| 10-Year EBITDA | $11 | $101M | 78.0% |
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 | $9M |
| Discount Rate (WACC) | 7.2% - 5.9% |
| Enterprise Value | $125M - $154M |
| Net Debt | $(1)M |
| Equity Value | $126M - $155M |
| Outstanding Shares | 9M |
| Fair Value | $13 - $16 |
| Selected Fair Value | $14.89 |
| Metric | Value |
|---|---|
| Market Capitalization | $351M |
| Enterprise Value | $350M |
| Trailing P/E | 16.30 |
| Forward P/E | 19.64 |
| Trailing EV/EBITDA | 13.35 |
| Current Dividend Yield | 314.96% |
| Dividend Growth Rate (5Y) | 8.15% |
| Debt-to-Equity Ratio | 1.15 |
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% | $2.13 |
| Discounted Cash Flow (5Y) | 25% | $1.72 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.44 |
| Dividend Discount Model (Stable) | 15% | $4.40 |
| Earnings Power Value | 10% | $1.49 |
| Weighted Average | 100% | $14.17 |
Based on our comprehensive valuation analysis, Value Line Inc's weighted average intrinsic value is $14.17, which is approximately 62.0% below the current market price of $37.27.
Key investment considerations:
Given these factors, we believe Value Line Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.