GMED
Globus Medical, Inc.
$78.12
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.4% below fair value
You pay
$78.12
Bear
$78.88
Fair
$115.59
Bull
$154.72
Bear
$78.88
+1.0%
8% stage 1 growth, 11% discount
Fair
$115.59
+48.0%
13% stage 1 growth, 11% discount
Bull
$154.72
+98.0%
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
18.3x
Market is pricing in (growth)
7.8%
vs 13.2% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (36 analysts)
$98.88
Divergence from AlphaVal
17%
Summary
Using a two-stage FCF DCF with 13% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $115.59 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