The estimated intrinsic value of Just Energy Group Inc. (JENGQ) using a Dividend Discount Model (DDM) is $4,547.40 (based on the recommended DDM method), compared to the current stock price of $0.01. This suggests the stock may be undervalued by 31,361,279.3% relative to its intrinsic value.
For utility companies, which are valued primarily for their stable and predictable dividend streams, SharesGrow uses a Dividend Discount Model (DDM): Intrinsic Value = Annual Dividend ÷ (Cost of Equity − Dividend Growth Rate). This model assumes a long-term dividend growth rate of 4% — consistent with the historical average for regulated utilities — and uses a minimum 7% cost of equity. The DDM is the preferred valuation method for income-oriented stocks with stable payout histories.
The valuation uses a CAPM-derived discount rate of 4.09% (CAPM-derived from beta of 0.23). For comparison, the standard 20-year DCF model produces: Operating Cash Flow (OCF): $77.56 | Free Cash Flow (FCF): $77.45 | Net Income (NI): $493.29.