Aug. 25 at 4:18 PM
$TOYO
This is what confuses me the most about the current valuation. It trades at <3x forward earnings and will grow EPS another 25% minimum. The market is pricing it for negative terminal value like
$CHTR. This couldn’t be farther from the case. TOYO is compounding earnings and trades at an insanely cheap valuation. The disconnect in stock price makes no sense.
I used a 16% WACC to discount future cashflows, the same I used on the tax credits. I inputted a 1% terminal value growth percentage just to be conservative. If TOYO management decides to expand to 6.5GW in the US, TOYO will grow much faster than 1% fyi. With the recent dilution and cash raising, I get FV of
$22.36 today. This only counts for FCF, not any of the tax credits. If you add the tax credits to this valuation, you get a fair value north of
$30 per share.
