GTM
ZoomInfo Technologies Inc.
$3.61
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 89.9% below fair value
You pay
$3.61
Bear
$16.82
Fair
$35.79
Bull
$60.32
Bear
$16.82
+365.9%
13% stage 1 growth, 11% discount
Fair
$35.79
+891.3%
21% stage 1 growth, 11% discount
Bull
$60.32
+1570.9%
28% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (21% base case)
Terminal Value % of EV
47%
Implied Market Multiple
8.9x
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 $5.08 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $35.79 per share.
Warnings
Stock-based employee pay equals 94% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $5.08 (from 29 analysts). Our estimate is 806% 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