ATGE
Adtalem Global Education Inc.
$106.64
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 45.1% below fair value
You pay
$106.64
Bear
$121.14
Fair
$194.41
Bull
$274.67
Bear
$121.14
+13.6%
9% stage 1 growth, 11% discount
Fair
$194.41
+82.3%
14% stage 1 growth, 11% discount
Bull
$274.67
+157.6%
19% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
42%
Implied Market Multiple
17.4x
Summary
Using a two-stage FCF DCF with 14% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $194.41 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