As of June 18, 2025, Vimi Fasteners SpA's estimated intrinsic value ranges from $0.71 to $5.60 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $5.51 | +461.9% |
| Discounted Cash Flow (5Y) | $1.25 | +27.2% |
| Dividend Discount Model (Multi-Stage) | $3.73 | +280.7% |
| Dividend Discount Model (Stable) | $0.71 | -27.3% |
| Earnings Power Value | $5.60 | +471.4% |
Is Vimi Fasteners SpA (VIM.MI) undervalued or overvalued?
With the current market price at $0.98, 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 Vimi Fasteners SpA'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 | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.5 | 0.59 |
| Cost of equity | 7.8% | 10.1% |
| Cost of debt | 4.0% | 12.2% |
| Tax rate | 9.7% | 10.8% |
| Debt/Equity ratio | 1.51 | 1.51 |
| After-tax WACC | 5.3% | 10.6% |
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 | $1 | $34M | 87.0% |
| 10-Year Growth | $6 | $92M | 77.3% |
| 5-Year EBITDA | $1 | $28M | 84.2% |
| 10-Year EBITDA | $2 | $46M | 55.0% |
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 | $7M |
| Discount Rate (WACC) | 10.6% - 5.3% |
| Enterprise Value | $62M - $124M |
| Net Debt | $17M |
| Equity Value | $45M - $107M |
| Outstanding Shares | 14M |
| Fair Value | $3 - $8 |
| Selected Fair Value | $5.60 |
| Metric | Value |
|---|---|
| Market Capitalization | $13M |
| Enterprise Value | $30M |
| Trailing P/E | 25.24 |
| Forward P/E | 11.04 |
| Trailing EV/EBITDA | 3.50 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.51 |
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% | $1.65 |
| Discounted Cash Flow (5Y) | 25% | $0.31 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.75 |
| Dividend Discount Model (Stable) | 15% | $0.11 |
| Earnings Power Value | 10% | $0.56 |
| Weighted Average | 100% | $3.38 |
Based on our comprehensive valuation analysis, Vimi Fasteners SpA's weighted average intrinsic value is $3.38, which is approximately 244.6% above the current market price of $0.98.
Key investment considerations:
Given these factors, we believe Vimi Fasteners SpA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.