What is VIDE's Intrinsic value?

Video Display Corp (VIDE) Intrinsic Value Analysis

Executive Summary

As of April 4, 2026, Video Display Corp's estimated intrinsic value ranges from $0.00 to $0.30 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $0.30 +302405.8%
Discounted Cash Flow (5Y) $0.24 +239816.9%
Dividend Discount Model (Multi-Stage) $0.00 +96.9%

Is Video Display Corp (VIDE) undervalued or overvalued?

With the current market price at $0.00, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Video Display Corp's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows
  2. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

Weighted Average Cost of Capital (WACC)

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 310.6 555.11
Cost of equity 1432.6% 3113.5%
Cost of debt 4.0% 7.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 1215.77 1215.77
After-tax WACC 4.1% 7.7%

Valuation Methods

1. Discounted Cash Flow (DCF) Valuation

Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:

  • Forecast Period: 5-year DCF and 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 5.9% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $8 (FY02-2024) to $11 (FY02-2034)
  • Net profit margin expansion from 6% to 5%
  • Capital expenditures maintained at approximately 1% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $0 $6M 77.3%
10-Year Growth $0 $7M 61.7%
5-Year EBITDA $0 $7M 79.8%
10-Year EBITDA $0 $8M 62.8%

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 2273.1%
  • Long-term growth rate: 0.5%
  • Fair value: $0.00 (96.9% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 3113.5% (Low) to 1432.6% (High)
  • Long-term growth rate: 0.0% (Low) to 1.0% (High)
  • Fair value range: $(0) to $(0)
  • Selected fair value: $-0.00 (-2253.7% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $2M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 9.65
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 1215.77

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Discounted Cash Flow (10Y) 40% $0.09
Discounted Cash Flow (5Y) 33% $0.06
Dividend Discount Model (Multi-Stage) 27% $0.00
Weighted Average 100% $0.20

Investment Conclusion

Based on our comprehensive valuation analysis, Video Display Corp's intrinsic value is $0.20, which is approximately 200927.1% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (6% to 5% margin)

Given these factors, we believe Video Display Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.