KFY
Korn Ferry
$71.40
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 66.3% below fair value
You pay
$71.40
Bear
$135.21
Fair
$211.85
Bull
$299.29
Bear
$135.21
+89.4%
10% stage 1 growth, 11% discount
Fair
$211.85
+196.7%
16% stage 1 growth, 11% discount
Bull
$299.29
+319.2%
21% stage 1 growth, 11% discount
Adjust Assumptions
16.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (16% base case)
Terminal Value % of EV
44%
Implied Market Multiple
10.2x
Market is pricing in (growth)
-0.3%
vs 16.0% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$85.25
Divergence from AlphaVal
149%
Summary
Using a two-stage FCF DCF with 16% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $211.85 per share.
Warnings
Wall Street's average price target is $85.25 (from 11 analysts). Our estimate is 149% 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