G
Genpact Limited
$31.91
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 53.1% below fair value
You pay
$31.91
Bear
$50.47
Fair
$68.05
Bull
$85.14
Bear
$50.47
+58.2%
6% stage 1 growth, 11% discount
Fair
$68.05
+113.2%
10% stage 1 growth, 11% discount
Bull
$85.14
+166.8%
13% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
8.9x
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 $42.00 from 40 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $68.05 per share.
Warnings
Wall Street's average price target is $42.00 (from 40 analysts). Our estimate is 89% 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