CLMB
Climb Global Solutions, Inc.
$25.46
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 17.9% below fair value
You pay
$25.46
Bear
$17.32
Fair
$31.02
Bull
$48.64
Bear
$17.32
-32.0%
13% stage 1 growth, 11% discount
Fair
$31.02
+21.9%
21% stage 1 growth, 11% discount
Bull
$48.64
+91.0%
27% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (21% base case)
Terminal Value % of EV
47%
Implied Market Multiple
39.9x
Market is pricing in (growth)
18.2%
vs 21.0% base
Summary
Using a two-stage FCF DCF with 21% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $31.02 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