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REDDIT

A DCF Valuation for a pennystock that has a huge upside potential-IH

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Aug 25, 2026 · 16:30

https://preview.redd.it/t3p9ig64sjlh1.png?width=945&format=png&auto=webp&s=0ddf17eda3f75d90da9819ed8faf8b6818ae77dd

We know that in a DCF valuation the enterprise value is equal to the value of the firm's operations plus the value of its non-operating assets. To get the value of equity you subtract the net debt of the company from its enterprise value. If the company has a net cash position then you add this cash to the enterprise value to get the equity value. iHuman(IH) is a company whose net cash position is around $3.20 per share. To get the intrinsic value for the shares you need to add up the value of operations and you will definetely get something greater than $3.20:) However, this company currently trades at $1.22. The company is on the edge of a new long-term growth phase and I believe that it will be one of the biggest success stories and return stories in the next 12 months. Not an investment advice.