G
Genpact Limited
$35.33
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 59.0% below fair value
You pay
$35.33
Bear
$63.92
Fair
$86.09
Bull
$107.64
Bear
$63.92
+80.9%
6% stage 1 growth, 11% discount
Fair
$86.09
+143.7%
10% stage 1 growth, 11% discount
Bull
$107.64
+204.7%
13% stage 1 growth, 11% discount
Adjust Assumptions
9.6%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
9.1x
Market is pricing in (growth)
-1.9%
vs 9.6% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (40 analysts)
$38.33
Divergence from AlphaVal
125%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $86.09 per share.
Warnings
Wall Street's average price target is $38.33 (from 40 analysts). Our estimate is 125% 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