As of May 31, 2025, VinaCapital Vietnam Opportunity Fund Ltd's estimated intrinsic value ranges from $1.35 to $630.64 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $630.64 | +50.9% |
| Discounted Cash Flow (5Y) | $573.05 | +37.1% |
| Dividend Discount Model (Multi-Stage) | $233.07 | -44.2% |
| Dividend Discount Model (Stable) | $321.79 | -23.0% |
| Earnings Power Value | $1.35 | -99.7% |
Is VinaCapital Vietnam Opportunity Fund Ltd (VOF.L) undervalued or overvalued?
With the current market price at $418.00, 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 VinaCapital Vietnam Opportunity Fund 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 | 1.27 | 1.38 |
| Cost of equity | 11.6% | 14.7% |
| Cost of debt | 4.6% | 4.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.7% | 9.2% |
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 | $776 | $975M | 72.5% |
| 10-Year Growth | $854 | $1,077M | 55.0% |
| 5-Year EBITDA | $490 | $602M | 55.5% |
| 10-Year EBITDA | $615 | $765M | 36.7% |
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 | $(3)M |
| Discount Rate (WACC) | 9.2% - 7.7% |
| Enterprise Value | $(31)M - $(37)M |
| Net Debt | $(37)M |
| Equity Value | $6M - $(1)M |
| Outstanding Shares | 1M |
| Fair Value | $4 - $(1) |
| Selected Fair Value | $1.35 |
| Metric | Value |
|---|---|
| Market Capitalization | $545M |
| Enterprise Value | $518M |
| Trailing P/E | 10.12 |
| Forward P/E | 11.89 |
| Trailing EV/EBITDA | 6.10 |
| Current Dividend Yield | 295.22% |
| Dividend Growth Rate (5Y) | 2.17% |
| Debt-to-Equity Ratio | 1.16 |
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% | $189.19 |
| Discounted Cash Flow (5Y) | 25% | $143.26 |
| Dividend Discount Model (Multi-Stage) | 20% | $46.61 |
| Dividend Discount Model (Stable) | 15% | $48.27 |
| Earnings Power Value | 10% | $0.14 |
| Weighted Average | 100% | $427.47 |
Based on our comprehensive valuation analysis, VinaCapital Vietnam Opportunity Fund Ltd's weighted average intrinsic value is $427.47, which is approximately 2.3% above the current market price of $418.00.
Key investment considerations:
Given these factors, we believe VinaCapital Vietnam Opportunity Fund Ltd is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.