GMED
Globus Medical, Inc.
$84.81
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 19.9% below fair value
You pay
$84.81
Bear
$75.52
Fair
$105.91
Bull
$137.15
Bear
$75.52
-11.0%
7% stage 1 growth, 11% discount
Fair
$105.91
+24.9%
12% stage 1 growth, 11% discount
Bull
$137.15
+61.7%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
19.9x
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 $110.29 from 36 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $105.91 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