CODA
Coda Octopus Group, Inc.
$10.02
Platform & Compounding FCF
70%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 6.6% below fair value
You pay
$10.02
Bear
$9.44
Fair
$10.72
Bull
$11.85
Bear
$9.44
-5.7%
3% stage 1 growth, 11% discount
Fair
$10.72
+7.0%
6% stage 1 growth, 11% discount
Bull
$11.85
+18.3%
8% stage 1 growth, 11% discount
Adjust Assumptions
5.8%
11.0%
3.0%
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
35%
Implied Market Multiple
14.4x
Market is pricing in (growth)
4.6%
vs 5.8% base
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $10.72 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