CODA
Coda Octopus Group, Inc.
$10.92
Platform & Compounding FCF
70%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 1.8% above fair value
You pay
$10.92
Bear
$9.45
Fair
$10.73
Bull
$11.85
Bear
$9.45
-13.5%
3% stage 1 growth, 11% discount
Fair
$10.73
-1.7%
6% stage 1 growth, 11% discount
Bull
$11.85
+8.6%
8% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
35%
Implied Market Multiple
16.2x
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $10.73 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