ANGI
Angi Inc.
$6.16
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 68.0% below fair value
You pay
$6.16
Bear
$17.46
Fair
$19.23
Bull
$21.36
Bear
$17.46
+183.5%
3% stage 1 growth, 12% discount
Fair
$19.23
+212.3%
4% stage 1 growth, 12% discount
Bull
$21.36
+246.8%
5% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
29%
Implied Market Multiple
4.8x
Market is pricing in (growth)
-10.2%
vs 4.1% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $10.80 from 55 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $19.23 per share.
Warnings
Stock-based employee pay equals 34% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $10.80 (from 55 analysts). Our estimate is 120% above the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions