FLNG
FLEX LNG Ltd
$31.85
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 12.8% above fair value
You pay
$31.85
Bear
$28.23
Fair
$28.23
Bull
$31.88
Bear
$28.23
-11.4%
3% stage 1 growth, 11% discount
Fair
$28.23
-11.4%
3% stage 1 growth, 11% discount
Bull
$31.88
+0.1%
4% stage 1 growth, 11% discount
Adjust Assumptions
3.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
13.7x
Market is pricing in (growth)
3.9%
vs 3.0% base
Summary
Using a two-stage FCF DCF with 3% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $28.23 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