As of May 23, 2025, Westshore Terminals Investment Corp's estimated intrinsic value ranges from $4.90 to $32.20 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $29.89 | +14.4% |
| Discounted Cash Flow (5Y) | $32.20 | +23.2% |
| Dividend Discount Model (Multi-Stage) | $21.29 | -18.5% |
| Dividend Discount Model (Stable) | $19.86 | -24.0% |
| Earnings Power Value | $4.90 | -81.2% |
Is Westshore Terminals Investment Corp (WTE.TO) undervalued or overvalued?
With the current market price at $26.13, 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 Westshore Terminals Investment Corp'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 | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.76 | 0.94 |
| Cost of equity | 7.0% | 9.9% |
| Cost of debt | 4.1% | 4.5% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.31 | 0.31 |
| After-tax WACC | 6.1% | 8.3% |
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 | $32 | $2,289M | 73.0% |
| 10-Year Growth | $30 | $2,147M | 51.4% |
| 5-Year EBITDA | $26 | $1,924M | 67.9% |
| 10-Year EBITDA | $28 | $2,002M | 47.8% |
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 | $42M |
| Discount Rate (WACC) | 8.3% - 6.1% |
| Enterprise Value | $509M - $698M |
| Net Debt | $300M |
| Equity Value | $208M - $397M |
| Outstanding Shares | 62M |
| Fair Value | $3 - $6 |
| Selected Fair Value | $4.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $1614M |
| Enterprise Value | $1914M |
| Trailing P/E | 14.48 |
| Forward P/E | 15.33 |
| Trailing EV/EBITDA | 6.10 |
| Current Dividend Yield | 810.44% |
| Dividend Growth Rate (5Y) | 28.46% |
| Debt-to-Equity Ratio | 0.31 |
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% | $8.97 |
| Discounted Cash Flow (5Y) | 25% | $8.05 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.26 |
| Dividend Discount Model (Stable) | 15% | $2.98 |
| Earnings Power Value | 10% | $0.49 |
| Weighted Average | 100% | $24.74 |
Based on our comprehensive valuation analysis, Westshore Terminals Investment Corp's weighted average intrinsic value is $24.74, which is approximately 5.3% below the current market price of $26.13.
Key investment considerations:
Given these factors, we believe Westshore Terminals Investment Corp is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.