BZ
Kanzhun Limited
$13.75
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 69.0% below fair value
You pay
$13.75
Bear
$28.98
Fair
$44.41
Bull
$62.41
Bear
$28.98
+110.7%
10% stage 1 growth, 11% discount
Fair
$44.41
+223.0%
17% stage 1 growth, 11% discount
Bull
$62.41
+353.9%
22% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (17% base case)
Terminal Value % of EV
44%
Implied Market Multiple
6.1x
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 $21.71 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $44.41 per share.
Warnings
Stock-based employee pay equals 33% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $21.71 (from 9 analysts). Our estimate is 131% above the consensus -- consider that gap carefully.
Financial statements were converted from CNY into USD using USDCNY at 0.1474 USD per CNY.
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