GLOB
Globant S.A.
$36.32
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 71.2% below fair value
You pay
$36.32
Bear
$88.04
Fair
$126.20
Bull
$165.15
Bear
$88.04
+142.4%
7% stage 1 growth, 11% discount
Fair
$126.20
+247.5%
12% stage 1 growth, 11% discount
Bull
$165.15
+354.7%
15% stage 1 growth, 11% discount
Adjust Assumptions
11.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
7.6x
Market is pricing in (growth)
-4.4%
vs 11.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (29 analysts)
$45.18
Divergence from AlphaVal
179%
Summary
Using a two-stage FCF DCF with 12% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $126.20 per share.
Warnings
Stock-based employee pay equals 74% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $45.18 (from 29 analysts). Our estimate is 179% 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