What is WLF.V's Intrinsic value?

Wolfden Resources Corp (WLF.V) Intrinsic Value Analysis

Executive Summary

As of June 16, 2025, Wolfden Resources Corp's estimated intrinsic value ranges from $0.08 to $0.08 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $0.08 +0.3%

Is Wolfden Resources Corp (WLF.V) undervalued or overvalued?

With the current market price at $0.07, the stock appears to be fairly valued.

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 Wolfden Resources Corp's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

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 0.71 0.81
Cost of equity 7.5% 9.8%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 0.02 0.02
After-tax WACC 7.4% 9.7%

Valuation Methods

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: 8.6%
  • Long-term growth rate: 2.0%
  • Fair value: $-0.06 (-182.4% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 9.8% (Low) to 7.5% (High)
  • Long-term growth rate: 1.0% (Low) to 3.0% (High)
  • Fair value range: $0 to $0
  • Selected fair value: $0.08 (0.3% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $12M
Enterprise Value $11M
Trailing P/E 13.94
Forward P/E 13.94
Trailing EV/EBITDA 0.00
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.02

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
Dividend Discount Model (Stable) 100% $0.01
Weighted Average 100% $0.08

Investment Conclusion

Based on our comprehensive valuation analysis, Wolfden Resources Corp's weighted average intrinsic value is $0.08, which is approximately 0.3% above the current market price of $0.07.

Key investment considerations:

  • Conservative capital structure (Debt/Equity of 0.02)

Given these factors, we believe Wolfden Resources Corp is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.