GDDY
GoDaddy Inc.
$90.46
Platform & Compounding FCF
80%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 41.8% below fair value
You pay
$90.46
Bear
$116.64
Fair
$155.47
Bull
$192.16
Bear
$116.64
+28.9%
5% stage 1 growth, 11% discount
Fair
$155.47
+71.9%
9% stage 1 growth, 11% discount
Bull
$192.16
+112.4%
11% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
11.0x
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 $111.63 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $155.47 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 $111.63 (from 38 analysts). Our estimate is 56% 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