BR
Broadridge Financial Solutions, Inc.
$178.06
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 15.5% above fair value
You pay
$178.06
Bear
$124.01
Fair
$154.18
Bull
$180.99
Bear
$124.01
-30.4%
4% stage 1 growth, 11% discount
Fair
$154.18
-13.4%
6% stage 1 growth, 11% discount
Bull
$180.99
+1.6%
8% stage 1 growth, 11% discount
Adjust Assumptions
6.2%
11.0%
3.0%
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
36%
Implied Market Multiple
18.4x
Market is pricing in (growth)
7.9%
vs 6.2% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (24 analysts)
$199.00
Divergence from AlphaVal
23%
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $154.18 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