As of June 6, 2025, Vietnam Holding Ltd's estimated intrinsic value ranges from $151.91 to $440.98 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $440.98 | +27.4% |
| Discounted Cash Flow (5Y) | $410.68 | +18.7% |
| Dividend Discount Model (Multi-Stage) | $151.91 | -56.1% |
| Dividend Discount Model (Stable) | $418.28 | +20.9% |
| Earnings Power Value | $273.65 | -20.9% |
Is Vietnam Holding Ltd (VNH.L) undervalued or overvalued?
With the current market price at $346.00, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Vietnam Holding Ltd'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 | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.59 | 1.69 |
| Cost of equity | 13.5% | 16.8% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.8% | 10.4% |
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 | $553 | $124M | 71.1% |
| 10-Year Growth | $594 | $134M | 50.1% |
| 5-Year EBITDA | $377 | $83M | 56.8% |
| 10-Year EBITDA | $460 | $103M | 34.9% |
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 | $8M |
| Discount Rate (WACC) | 10.4% - 8.8% |
| Enterprise Value | $74M - $88M |
| Net Debt | $(5)M |
| Equity Value | $79M - $93M |
| Outstanding Shares | 0M |
| Fair Value | $339 - $398 |
| Selected Fair Value | $273.65 |
| Metric | Value |
|---|---|
| Market Capitalization | $81M |
| Enterprise Value | $77M |
| Trailing P/E | 5.38 |
| Forward P/E | 11.76 |
| Trailing EV/EBITDA | 5.80 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.88 |
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% | $132.29 |
| Discounted Cash Flow (5Y) | 25% | $102.67 |
| Dividend Discount Model (Multi-Stage) | 20% | $30.38 |
| Dividend Discount Model (Stable) | 15% | $62.74 |
| Earnings Power Value | 10% | $27.36 |
| Weighted Average | 100% | $355.45 |
Based on our comprehensive valuation analysis, Vietnam Holding Ltd's weighted average intrinsic value is $355.45, which is approximately 2.7% above the current market price of $346.00.
Key investment considerations:
Given these factors, we believe Vietnam Holding Ltd is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.