ICTEF
International Container Terminal Services, Inc.
$13.05
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 39.1% below fair value
You pay
$13.05
Bear
$12.83
Fair
$21.45
Bull
$31.05
Bear
$12.83
-1.7%
9% stage 1 growth, 11% discount
Fair
$21.45
+64.3%
15% stage 1 growth, 11% discount
Bull
$31.05
+137.9%
20% stage 1 growth, 11% discount
Adjust Assumptions
15.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (15% base case)
Terminal Value % of EV
43%
Implied Market Multiple
20.3x
Market is pricing in (growth)
9.2%
vs 15.0% base
Summary
Using a two-stage FCF DCF with 15% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $21.45 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