What is VMCS's Intrinsic value?

VisualMED Clinical Solutions Corp (VMCS) Intrinsic Value Analysis

Executive Summary

As of June 10, 2025, VisualMED Clinical Solutions Corp's estimated intrinsic value ranges from $0.01 to $0.06 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $0.06 +1605.6%
Discounted Cash Flow (5Y) $0.03 +704.6%
Dividend Discount Model (Multi-Stage) $0.01 +180.0%
Dividend Discount Model (Stable) $0.02 +354.2%
Earnings Power Value $0.02 +461.3%

Is VisualMED Clinical Solutions Corp (VMCS) 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 VisualMED Clinical Solutions 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
  3. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

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 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.67 1.1
Cost of equity 7.5% 11.8%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 0.55 0.55
After-tax WACC 6.2% 8.9%

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: 7.5% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $2 (FY06-2011) to $2 (FY06-2021)
  • Net profit margin expansion from 11% to 8%
  • Capital expenditures maintained at approximately 5% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $0 $3M 10.0%
10-Year Growth $0 $6M 42.1%
5-Year EBITDA $0 $5M 46.9%
10-Year EBITDA $0 $6M 37.2%

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: 9.6%
  • Long-term growth rate: 0.5%
  • Fair value: $0.01 (180.0% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 11.8% (Low) to 7.5% (High)
  • Long-term growth rate: 0.0% (Low) to 1.0% (High)
  • Fair value range: $0 to $0
  • Selected fair value: $0.02 (354.2% from current price)

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $0M
Discount Rate (WACC) 8.9% - 6.2%
Enterprise Value $2M - $3M
Net Debt $0M
Equity Value $2M - $2M
Outstanding Shares 99M
Fair Value $0 - $0
Selected Fair Value $0.02

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $0M
Trailing P/E 2.18
Forward P/E 2.85
Trailing EV/EBITDA 11.10
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.55

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) 30% $0.02
Discounted Cash Flow (5Y) 25% $0.01
Dividend Discount Model (Multi-Stage) 20% $0.00
Dividend Discount Model (Stable) 15% $0.00
Earnings Power Value 10% $0.00
Weighted Average 100% $0.03

Investment Conclusion

Based on our comprehensive valuation analysis, VisualMED Clinical Solutions Corp's weighted average intrinsic value is $0.03, which is approximately 793.1% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (11% to 8% margin)

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