CXM
Sprinklr, Inc.
$5.63
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 35.4% below fair value
You pay
$5.63
Bear
$7.35
Fair
$8.72
Bull
$9.98
Bear
$7.35
+30.6%
5% stage 1 growth, 11% discount
Fair
$8.72
+54.9%
8% stage 1 growth, 11% discount
Bull
$9.98
+77.2%
10% stage 1 growth, 11% discount
Adjust Assumptions
7.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
37%
Implied Market Multiple
9.9x
Market is pricing in (growth)
-0.7%
vs 7.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (17 analysts)
$7.25
Divergence from AlphaVal
20%
Summary
Using a two-stage FCF DCF with 8% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $8.72 per share.
Warnings
Stock-based employee pay equals 369% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
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