CLMB
Climb Global Solutions, Inc.
$20.96
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 48.3% below fair value
You pay
$20.96
Bear
$22.36
Fair
$40.52
Bull
$63.86
Bear
$22.36
+6.7%
13% stage 1 growth, 11% discount
Fair
$40.52
+93.3%
21% stage 1 growth, 11% discount
Bull
$63.86
+204.7%
27% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (21% base case)
Terminal Value % of EV
47%
Implied Market Multiple
24.4x
Summary
Using a two-stage FCF DCF with 21% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $40.52 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