BRKRP
Bruker Corporation 6.375% Mandatory Convertible Preferred Stock, Series A
$349.15
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 2883.5% above fair value
You pay
$349.15
Bear
$4.94
Fair
$11.70
Bull
$18.61
Bear
$4.94
-98.6%
7% stage 1 growth, 11% discount
Fair
$11.70
-96.6%
12% stage 1 growth, 11% discount
Bull
$18.61
-94.7%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
377.4x
Summary
Using a two-stage FCF DCF with 12% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $11.70 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