ATGE
Adtalem Global Education Inc.
$106.64
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 54.5% below fair value
You pay
$106.64
Bear
$170.65
Fair
$234.53
Bull
$297.29
Bear
$170.65
+60.0%
6% stage 1 growth, 11% discount
Fair
$234.53
+119.9%
10% stage 1 growth, 11% discount
Bull
$297.29
+178.8%
13% stage 1 growth, 11% discount
Adjust Assumptions
10.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
10.5x
Market is pricing in (growth)
0.1%
vs 10.0% base
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $234.53 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