GLOB
Globant S.A.
$40.13
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 66.4% below fair value
You pay
$40.13
Bear
$83.43
Fair
$119.37
Bull
$156.07
Bear
$83.43
+107.9%
7% stage 1 growth, 11% discount
Fair
$119.37
+197.5%
12% stage 1 growth, 11% discount
Bull
$156.07
+288.9%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
7.5x
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 $54.56 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $119.37 per share.
Warnings
Wall Street's average price target is $54.56 (from 29 analysts). Our estimate is 158% 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