KFY
Korn Ferry
$68.03
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.1% below fair value
You pay
$68.03
Bear
$79.87
Fair
$100.18
Bull
$119.32
Bear
$79.87
+17.4%
5% stage 1 growth, 11% discount
Fair
$100.18
+47.3%
8% stage 1 growth, 11% discount
Bull
$119.32
+75.4%
11% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
38%
Implied Market Multiple
11.5x
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 $70.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $100.18 per share.
Warnings
Wall Street's average price target is $70.00 (from 11 analysts). Our estimate is 54% 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