BR
Broadridge Financial Solutions, Inc.
$150.49
Platform & Compounding FCF
80%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 5.7% below fair value
You pay
$150.49
Bear
$118.39
Fair
$159.52
Bull
$198.20
Bear
$118.39
-21.3%
5% stage 1 growth, 11% discount
Fair
$159.52
+6.0%
8% stage 1 growth, 11% discount
Bull
$198.20
+31.7%
11% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
37%
Implied Market Multiple
20.3x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $217.50 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $159.52 per share.
Warnings
Wall Street's average price target is $217.50 (from 24 analysts). Our estimate is 36% below the consensus -- consider that gap carefully.
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