DOCS Doximity, Inc.
$27.79
Platform & Compounding FCF 85%
Two-stage FCF DCF
Mild · Conviction

Overvalued

Trading 6.5% above fair value

You pay $27.79
Bear $21.55
Fair $26.10
Bull $30.32
Bear $21.55 -22.4% 5% stage 1 growth, 11% discount
Fair $26.10 -6.1% 8% stage 1 growth, 11% discount
Bull $30.32 +9.1% 10% stage 1 growth, 11% discount

Adjust Assumptions

7.8%
11.0%
3.0%

Key Value Driver

FCF growth rate (8% base case)

Terminal Value % of EV 37%
Implied Market Multiple 19.7x
Market is pricing in (growth) 8.8% vs 7.8% base

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (24 analysts) $27.00
Divergence from AlphaVal 3%

Summary

Using a two-stage FCF DCF with 8% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $26.10 per share.

Warnings

⚠ Stock-based employee pay equals 62% 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