EEFT
Euronet Worldwide, Inc.
$66.20
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 64.6% below fair value
You pay
$66.20
Bear
$130.53
Fair
$187.02
Bull
$244.40
Bear
$130.53
+97.2%
7% stage 1 growth, 11% discount
Fair
$187.02
+182.5%
11% stage 1 growth, 11% discount
Bull
$244.40
+269.2%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
40%
Implied Market Multiple
8.1x
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 $91.40 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $187.02 per share.
Warnings
Wall Street's average price target is $91.40 (from 23 analysts). Our estimate is 139% 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