As of May 29, 2025, Village Super Market Inc's estimated intrinsic value ranges from $39.94 to $54.73 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $54.73 | +44.1% |
| Discounted Cash Flow (5Y) | $47.30 | +24.5% |
| Dividend Discount Model (Multi-Stage) | $42.22 | +11.1% |
| Dividend Discount Model (Stable) | $39.94 | +5.1% |
| Earnings Power Value | $48.77 | +28.4% |
Is Village Super Market Inc (VLGEA) undervalued or overvalued?
With the current market price at $37.99, 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 Village Super Market 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 | 0.71 | 0.9 |
| Cost of equity | 7.1% | 9.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 30.7% | 31.0% |
| Debt/Equity ratio | 0.17 | 0.17 |
| After-tax WACC | 6.5% | 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 | $47 | $648M | 73.5% |
| 10-Year Growth | $55 | $757M | 55.0% |
| 5-Year EBITDA | $60 | $835M | 79.5% |
| 10-Year EBITDA | $66 | $930M | 63.4% |
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 | $50M |
| Discount Rate (WACC) | 8.9% - 6.5% |
| Enterprise Value | $563M - $775M |
| Net Debt | $(50)M |
| Equity Value | $613M - $825M |
| Outstanding Shares | 15M |
| Fair Value | $42 - $56 |
| Selected Fair Value | $48.77 |
| Metric | Value |
|---|---|
| Market Capitalization | $560M |
| Enterprise Value | $510M |
| Trailing P/E | 10.36 |
| Forward P/E | 10.70 |
| Trailing EV/EBITDA | 6.70 |
| Current Dividend Yield | 244.88% |
| Dividend Growth Rate (5Y) | 0.65% |
| Debt-to-Equity Ratio | 0.17 |
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% | $16.42 |
| Discounted Cash Flow (5Y) | 25% | $11.83 |
| Dividend Discount Model (Multi-Stage) | 20% | $8.44 |
| Dividend Discount Model (Stable) | 15% | $5.99 |
| Earnings Power Value | 10% | $4.88 |
| Weighted Average | 100% | $47.56 |
Based on our comprehensive valuation analysis, Village Super Market Inc's weighted average intrinsic value is $47.56, which is approximately 25.2% above the current market price of $37.99.
Key investment considerations:
Given these factors, we believe Village Super Market Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.