GXO
GXO Logistics, Inc.
$49.31
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 0.0% below fair value
Bear
$0.00
-100.0%
6% stage 1 growth, 12% discount
Fair
$0.00
-100.0%
11% stage 1 growth, 12% discount
Bull
$0.00
-100.0%
14% stage 1 growth, 12% discount
Adjust Assumptions
10.7%
12.0%
3.0%
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
35%
Implied Market Multiple
105.1x
Market is pricing in (growth)
33.5%
vs 10.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (18 analysts)
$65.86
Divergence from AlphaVal
100%
Summary
Using a two-stage FCF DCF with 11% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $0.00 per share.
Warnings
Stock-based employee pay equals 147% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $65.86 (from 18 analysts). Our estimate is 100% below 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