EEFT
Euronet Worldwide, Inc.
$82.74
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 55.8% below fair value
You pay
$82.74
Bear
$130.70
Fair
$187.25
Bull
$244.70
Bear
$130.70
+58.0%
7% stage 1 growth, 11% discount
Fair
$187.25
+126.3%
11% stage 1 growth, 11% discount
Bull
$244.70
+195.7%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
40%
Implied Market Multiple
9.8x
Market is pricing in (growth)
-0.9%
vs 11.3% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $92.33 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $187.25 per share.
Warnings
Wall Street's average price target is $92.33 (from 23 analysts). Our estimate is 137% above the consensus -- consider that gap carefully.
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