APPS
Digital Turbine, Inc.
$10.29
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 34.1% below fair value
You pay
$10.29
Bear
$7.73
Fair
$15.61
Bull
$25.24
Bear
$7.73
-24.9%
11% stage 1 growth, 12% discount
Fair
$15.61
+51.7%
19% stage 1 growth, 12% discount
Bull
$25.24
+145.3%
25% stage 1 growth, 12% discount
Adjust Assumptions
19.2%
12.0%
3.0%
Key Value Driver
FCF growth rate (19% base case)
Terminal Value % of EV
41%
Implied Market Multiple
26.2x
Market is pricing in (growth)
14.5%
vs 19.2% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (12 analysts)
$17.33
Divergence from AlphaVal
10%
Summary
Using a two-stage FCF DCF with 19% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $15.61 per share.
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