Complete PPIH Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
PPIH DCF Analysis
PPIH (Perma-Pipe International Holdings, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $142.6M | $150.7M | $158.4M | $175.3M | $192.2M | $208.8M | $225.1M | $240.9M |
| Revenue Growth % | - | 5.7% | 5.1% | 10.7% | 9.6% | 8.7% | 7.8% | 7.0% |
| EBIT | $8.0M | $13.4M | $20.3M | $16.0M | $17.7M | $19.4M | $21.2M | $22.9M |
| EBIT Margin % | 5.6% | 8.9% | 12.8% | 9.1% | 9.2% | 9.3% | 9.4% | 9.5% |
| Tax Rate % | 37.8% | 0.0% | 29.1% | 23.8% | 23.9% | 24.1% | 24.2% | 24.3% |
| NOPAT | $5.0M | $13.4M | $14.4M | $12.2M | $13.5M | $14.8M | $16.1M | $17.3M |
| NOPAT Margin % | 3.5% | 8.9% | 9.1% | 6.9% | 7.0% | 7.1% | 7.1% | 7.2% |
| Capex | $7.0M | $11.1M | $2.9M | $6.3M | $6.6M | $6.8M | $7.0M | $7.1M |
| Capex / Revenue % | 4.9% | 7.4% | 1.8% | 3.6% | 3.4% | 3.3% | 3.1% | 2.9% |
| Depreciation | $3.6M | $3.8M | $3.6M | $4.3M | $4.7M | $5.1M | $5.5M | $5.9M |
| D&A / Revenue % | 2.6% | 2.5% | 2.3% | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% |
| Change in NWC | $1.9M | $-792.0K | $13.7M | $4.1M | $3.6M | $3.1M | $2.7M | $2.3M |
| NWC Change / Revenue % | 1.3% | -0.5% | 8.6% | 2.4% | 1.9% | 1.5% | 1.2% | 1.0% |
| Unlevered FCF | $-209.8K | $6.9M | $1.5M | $6.0M | $8.0M | $10.0M | $11.9M | $13.9M |
| UFCF % Chg. | - | 3377.2% | -78.5% | 307.1% | 32.5% | 24.7% | 19.7% | 16.3% |
| FCF / Revenue % | -0.1% | 4.6% | 0.9% | 3.4% | 4.2% | 4.8% | 5.3% | 5.8% |
| Discount Factor | - | - | - | 0.948 | 0.899 | 0.852 | 0.808 | 0.766 |
| Present Value of FCF | - | - | - | $5.7M | $7.2M | $8.5M | $9.6M | $10.6M |
| Sum of PV of UFCF | - | - | - | $5.7M | $12.9M | $21.4M | $31.0M | $41.7M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 7.3% |
| Tax Rate | 23.8% |
| After Tax Cost of Debt | 5.6% |
| Risk Free Rate | 4.29% |
| Market Risk Premium | 4.3% |
| Beta | 0.27 |
| Cost of Equity | 5.5% |
| Total Debt | $33.3M |
| Market Cap | $182.2M |
| Total Capital | $215.4M |
| Debt Weighting | 15.4% |
| Equity Weighting | 84.6% |
| WACC | 5.5% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $13.9M |
| Terminal Value | $478.8M |
| PV of Terminal Value | $366.8M |
| Cumulative PV of UFCF | $41.7M |
| Net Debt | $17.5M |
| Equity Value | $391.0M |
| Shares Outstanding | 8.0M |
| Implied Share Price | $49 |
| Current Share Price | $23 |
| Implied Upside/(Downside) | +113.8% |
Valuation Summary
$48.78
Implied Price
$22.82
Current Price
+113.8%
Upside/Downside
5.5%
WACC
PPIH Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 6 peer companies in Industrials
P/E Ratio
$22.82
+0.0%
Peer Median: 20.4x
EV/EBITDA
$40.43
+77.2%
Peer Median: 13.2x
P/S Ratio
$22.82
+0.0%
Peer Median: 1.2x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for PPIH's business model and current situation.
Multiple Comparison
| Multiple | PPIH Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 20.4x | 20.4x | 15.9x | 0.0% | Fair Value |
| EV/EBITDA | 8.2x | 13.2x | 11.1x | -38.1% | Undervalued |
| P/S Ratio | 1.2x | 1.2x | 1.7x | 0.0% | Fair Value |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $0.14B | 0.0x | 0.0x | 0.0x | |
| $0.13B | 16.2x | 13.5x | 3.5x | |
| $0.10B | 0.0x | 13.2x | 0.2x | |
| $0.18B | 20.4x | 8.2x | 1.2x | |
| $0.12B | 0.0x | 12.9x | 0.6x | |
| $89.31B | 26.9x | 18.6x | 4.5x |
PPIH Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $1.12 | Latest 10-K |
| Book Value per Share | $9.00 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$15.07
Intrinsic Value
$22.82
Current Price
-34.0%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 1.12 = 25.22
Step 2: Multiply by Book Value per Share
25.22 × 9.00 = 226.97
Step 3: Take square root
√226.97 = 15.07
Graham Number Result:
$15.07
PPIH Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
1.12 × (8.5 + 2 × 14.6%)
Input Data & Growth Assumptions
Current EPS (TTM)$1.12
Latest 10-K • 2025-01-31T00:00:00
Historical 3Y14.6%
Financial statements
Historical 5Y20.2%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$42.34
Intrinsic Value
$22.82
Current Price
+85.6%
Upside/Downside
Base Formula
Growth: 14.6%
PPIH Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$1.12
Latest 10-K • 2025-01-31T00:00:00
Historical 3Y14.6%
3-year earnings growth
Historical 5Y20.2%
5-year earnings growth
14.6%
1%50%
Fair Value Formula: EPS × Growth Rate
$1.12 × 14.6% = $16.41
$16.41
Fair Value
$22.82
Current Price
-28.1%
Upside/Downside
PEG Analysis
20.4x
Current P/E
14.6%
Growth Rate
1.39
PEG Ratio (P/E ÷ Growth Rate)
Fairly Valued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
PPIH Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.0 | Base earnings from financial statements |
| Normalized Earnings | 0.0 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$13.67
EPV per Share
$22.82
Current Price
-40.1%
Upside/Downside
8.2%
WACC: 8.2% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.0B |
| Cost of Capital | 8.2% |
| Enterprise Value | $0.1B |
Per Share Value
| Enterprise Value | $0.1B |
| Shares Outstanding | 0.0B |
| EPV per Share | $13.67 |
WACC Components
| Cost of Equity | 9.1% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 84.6% |
| Debt Weight | 15.4% |
| WACC | 8.2% |