GDDY
GoDaddy Inc.
$97.23
Platform & Compounding FCF
80%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 46.7% below fair value
You pay
$97.23
Bear
$140.39
Fair
$182.30
Bull
$221.18
Bear
$140.39
+44.4%
5% stage 1 growth, 11% discount
Fair
$182.30
+87.5%
8% stage 1 growth, 11% discount
Bull
$221.18
+127.5%
10% stage 1 growth, 11% discount
Adjust Assumptions
7.8%
11.0%
3.0%
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
37%
Implied Market Multiple
10.7x
Market is pricing in (growth)
0.4%
vs 7.8% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (38 analysts)
$90.25
Divergence from AlphaVal
102%
Summary
Using a two-stage FCF DCF with 8% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $182.30 per share.
Warnings
Stock-based employee pay equals 36% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $90.25 (from 38 analysts). Our estimate is 102% 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