BIPC
Brookfield Infrastructure Corporation
$42.15
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 62.7% below fair value
You pay
$42.15
Bear
$13.89
Fair
$113.07
Bull
$237.36
Bear
$13.89
-67.1%
12% stage 1 growth, 11% discount
Fair
$113.07
+168.3%
20% stage 1 growth, 11% discount
Bull
$237.36
+463.1%
26% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (20% base case)
Terminal Value % of EV
46%
Implied Market Multiple
30.8x
Summary
Using a two-stage FCF DCF with 20% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $113.07 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