GMED
Globus Medical, Inc.
$76.71
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 33.9% below fair value
You pay
$76.71
Bear
$79.24
Fair
$116.10
Bull
$155.41
Bear
$79.24
+3.3%
8% stage 1 growth, 11% discount
Fair
$116.10
+51.4%
13% stage 1 growth, 11% discount
Bull
$155.41
+102.6%
17% stage 1 growth, 11% discount
Adjust Assumptions
13.2%
11.0%
3.0%
Key Value Driver
FCF growth rate (13% base case)
Terminal Value % of EV
41%
Implied Market Multiple
17.9x
Market is pricing in (growth)
7.5%
vs 13.2% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (36 analysts)
$95.13
Divergence from AlphaVal
22%
Summary
Using a two-stage FCF DCF with 13% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $116.10 per share.
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