GMED
Globus Medical, Inc.
$77.00
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 31.0% below fair value
You pay
$77.00
Bear
$76.18
Fair
$111.63
Bull
$149.42
Bear
$76.18
-1.1%
8% stage 1 growth, 11% discount
Fair
$111.63
+45.0%
13% stage 1 growth, 11% discount
Bull
$149.42
+94.0%
17% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (13% base case)
Terminal Value % of EV
41%
Implied Market Multiple
18.0x
Market is pricing in (growth)
7.6%
vs 13.2% base
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 $102.38 from 36 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $111.63 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