BSX
Boston Scientific Corporation
$43.34
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 16.0% below fair value
You pay
$43.34
Bear
$35.17
Fair
$51.57
Bull
$68.12
Bear
$35.17
-18.8%
7% stage 1 growth, 11% discount
Fair
$51.57
+19.0%
11% stage 1 growth, 11% discount
Bull
$68.12
+57.2%
14% stage 1 growth, 11% discount
Adjust Assumptions
11.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
40%
Implied Market Multiple
20.0x
Market is pricing in (growth)
9.0%
vs 11.1% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (44 analysts)
$66.30
Divergence from AlphaVal
22%
Summary
Using a two-stage FCF DCF with 11% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $51.57 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