BDC Belden Inc.
$106.03
Platform & Compounding FCF 50%
Two-stage FCF DCF
Moderate · Conviction

Overvalued

Trading 18.7% above fair value

You pay $106.03
Bear $60.16
Fair $89.32
Bull $117.33
Bear $60.16 -43.3% 5% stage 1 growth, 11% discount
Fair $89.32 -15.8% 9% stage 1 growth, 11% discount
Bull $117.33 +10.7% 12% stage 1 growth, 11% discount

Key Value Driver

FCF growth rate (9% base case)

Terminal Value % of EV 38%
Implied Market Multiple 26.6x

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 $150.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $89.32 per share.

Warnings

Wall Street's average price target is $150.00 (from 14 analysts). Our estimate is 51% below 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