BSY Bentley Systems, Incorporated
$33.16
Platform & Compounding FCF 80%
Two-stage FCF DCF
Moderate · Conviction

Fair Value

Trading 24.9% below fair value

You pay $33.16
Bear $27.41
Fair $44.16
Bull $62.49
Bear $27.41 -17.3% 9% stage 1 growth, 11% discount
Fair $44.16 +33.2% 14% stage 1 growth, 11% discount
Bull $62.49 +88.4% 19% stage 1 growth, 11% discount

Key Value Driver

FCF growth rate (14% base case)

Terminal Value % of EV 42%
Implied Market Multiple 23.3x

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 $47.57 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $44.16 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