EVC
Entravision Communications
$11.14
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 81.7% above fair value
You pay
$11.14
Bear
$4.96
Fair
$6.13
Bull
$7.16
Bear
$4.96
-55.5%
3% stage 1 growth, 12% discount
Fair
$6.13
-45.0%
6% stage 1 growth, 12% discount
Bull
$7.16
-35.7%
8% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
31%
Implied Market Multiple
23.0x
Market is pricing in (growth)
12.7%
vs 5.8% base
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $6.13 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