C

C21 Investments Inc
CNSX:CXXI

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C21 Investments Inc
CNSX:CXXI
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Price: 0.205 CAD 2.5%
Market Cap: 24.2m CAD

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Jul 14, 2024.

Estimated DCF Value of one CXXI stock is 1.001 CAD. Compared to the current market price of 0.205 CAD, the stock is Undervalued by 80%.

CXXI DCF Value
Base Case
1.001 CAD
Undervaluation 80%
DCF Value
Price
C
Worst Case
Base Case
Best Case
DCF Value: 1.001 CAD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 19.2m USD. The present value of the terminal value is 65.4m USD. The total present value equals 84.6m USD.
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 84.6m USD
Equity Value 84.6m USD
/ Shares Outstanding 118m
Value per Share 0.717 USD
USD / CAD Exchange Rate 1.3953
CXXI DCF Value 1.001 CAD
Undervalued by 80%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
84.6m CAD
/
Number of Shares
118m
=
DCF Value
1.001 CAD

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
32.5m 34.1m
Net Income
-8.6m 3.4m
FCFE
3m 8m

What is the DCF value of one CXXI stock?

Estimated DCF Value of one CXXI stock is 1.001 CAD. Compared to the current market price of 0.205 CAD, the stock is Undervalued by 80%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, C21 Investments Inc's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 84.6m USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 1.001 CAD per share.

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