BR
Broadridge Financial Solutions, Inc.
$175.11
Platform & Compounding FCF
80%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 10.9% above fair value
You pay
$175.11
Bear
$127.04
Fair
$157.94
Bull
$185.41
Bear
$127.04
-27.5%
4% stage 1 growth, 11% discount
Fair
$157.94
-9.8%
6% stage 1 growth, 11% discount
Bull
$185.41
+5.9%
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
17.8x
Market is pricing in (growth)
7.4%
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
21%
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $157.94 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