BIPC
Brookfield Infrastructure Corporation
$37.72
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 89.5% below fair value
You pay
$37.72
Bear
$145.26
Fair
$360.32
Bull
$635.86
Bear
$145.26
+285.1%
13% stage 1 growth, 12% discount
Fair
$360.32
+855.3%
21% stage 1 growth, 12% discount
Bull
$635.86
+1585.7%
27% stage 1 growth, 12% discount
Adjust Assumptions
21.2%
12.0%
3.0%
Key Value Driver
FCF growth rate (21% base case)
Terminal Value % of EV
43%
Implied Market Multiple
13.0x
Market is pricing in (growth)
4.9%
vs 21.1% base
Summary
Using a two-stage FCF DCF with 21% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $360.32 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