As of May 22, 2025, Viemed Healthcare Inc's estimated intrinsic value ranges from $2.22 to $23.86 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $23.86 | +128.3% |
| Discounted Cash Flow (5Y) | $11.35 | +8.6% |
| Dividend Discount Model (Multi-Stage) | $17.46 | +67.1% |
| Dividend Discount Model (Stable) | $8.07 | -22.8% |
| Earnings Power Value | $2.22 | -78.8% |
Is Viemed Healthcare Inc (VMD.TO) undervalued or overvalued?
With the current market price at $10.45, 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 Viemed Healthcare 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 | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.67 | 0.82 |
| Cost of equity | 7.2% | 9.9% |
| Cost of debt | 4.3% | 4.8% |
| Tax rate | 13.2% | 22.7% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 7.2% | 9.9% |
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 | $8 | $327M | 85.8% |
| 10-Year Growth | $18 | $688M | 75.8% |
| 5-Year EBITDA | $12 | $473M | 90.2% |
| 10-Year EBITDA | $19 | $713M | 76.7% |
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 | $5M |
| Discount Rate (WACC) | 9.9% - 7.2% |
| Enterprise Value | $54M - $74M |
| Net Debt | $0M |
| Equity Value | $54M - $74M |
| Outstanding Shares | 38M |
| Fair Value | $1 - $2 |
| Selected Fair Value | $2.22 |
| Metric | Value |
|---|---|
| Market Capitalization | $402M |
| Enterprise Value | $403M |
| Trailing P/E | 31.27 |
| Forward P/E | 23.15 |
| Trailing EV/EBITDA | 8.60 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.00 |
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% | $7.16 |
| Discounted Cash Flow (5Y) | 25% | $2.84 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.49 |
| Dividend Discount Model (Stable) | 15% | $1.21 |
| Earnings Power Value | 10% | $0.22 |
| Weighted Average | 100% | $14.92 |
Based on our comprehensive valuation analysis, Viemed Healthcare Inc's weighted average intrinsic value is $14.92, which is approximately 42.8% above the current market price of $10.45.
Key investment considerations:
Given these factors, we believe Viemed Healthcare Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.