What is VRD.H.V's Intrinsic value?

Viridis Holdings Corp (VRD.H.V) Intrinsic Value Analysis

Executive Summary

As of May 29, 2025, Viridis Holdings Corp's estimated intrinsic value ranges from $20.67 to $20.67 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $20.67 +82573.3%

Is Viridis Holdings Corp (VRD.H.V) undervalued or overvalued?

With the current market price at $0.03, 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 Viridis Holdings Corp's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows

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 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.22 0.36
Cost of equity 5.0% 7.1%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 5.66 5.66
After-tax WACC 3.9% 4.2%

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: 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 4.0% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $28 (FY12-2020) to $234 (FY12-2030)
  • Net profit margin expansion from -18% to 4%
  • Capital expenditures maintained at approximately 4% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $(1,234) $(157)M 92.5%
10-Year Growth $21 $528M 97.8%
5-Year EBITDA $1 $22M 153.5%
10-Year EBITDA $7 $187M 93.7%

Key Financial Metrics

Metric Value
Market Capitalization $1M
Enterprise Value $4M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 10.75
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 5.66

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) 100% $6.20
Weighted Average 100% $20.67

Investment Conclusion

Based on our comprehensive valuation analysis, Viridis Holdings Corp's weighted average intrinsic value is $20.67, which is approximately 82573.3% above the current market price of $0.03.

Key investment considerations:

  • Strong projected earnings growth (-18% to 4% margin)
  • Consistent cash flow generation

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