Is MPZAY Stock Undervalued?

A comprehensive valuation analysis of MIPS AB (publ) (MPZAY) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

12139417084.9% upside potential

Based on our analysis, MIPS AB (publ) appears to be potentially undervalued at the current price of $14.32. Our fair value estimate of $1738364540.88 suggests upside potential of approximately 12139417084.9%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing MPZAY relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
33.30
High
P/B Ratio
13.21
High
P/S Ratio
12.08
High
EV/EBITDA
3.62
Low

Understanding the Metrics

  • P/E Ratio: At 33.30x earnings, MPZAY is trading above the typical market average of 15-20x.
  • P/B Ratio: A P/B of 13.21 means investors pay $13.21 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 12.08 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: This ratio of 3.62 helps compare MPZAY to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of MIPS AB (publ) stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$14.32
vs
Fair Value Estimate
$1738364540.88
Implied Return+12139417084.9%

Our DCF model suggests MPZAY may be undervalued by approximately 12139417084.9%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, MIPS AB (publ) (MPZAY) appears to be undervalued at $14.32. With a fair value estimate of $1738364540.88, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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