BIPC
Brookfield Infrastructure Corporation
$42.52
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 61.5% below fair value
You pay
$42.52
Bear
$13.55
Fair
$110.30
Bull
$231.56
Bear
$13.55
-68.1%
12% stage 1 growth, 11% discount
Fair
$110.30
+159.4%
20% stage 1 growth, 11% discount
Bull
$231.56
+444.6%
26% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (20% base case)
Terminal Value % of EV
46%
Implied Market Multiple
31.1x
Market is pricing in (growth)
14.9%
vs 19.9% base
Summary
Using a two-stage FCF DCF with 20% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $110.30 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