KFY
Korn Ferry
$77.49
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 11.4% below fair value
You pay
$77.49
Bear
$81.97
Fair
$87.46
Bull
$94.54
Bear
$81.97
+5.8%
3% stage 1 growth, 11% discount
Fair
$87.46
+12.9%
4% stage 1 growth, 11% discount
Bull
$94.54
+22.0%
5% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
34%
Implied Market Multiple
11.8x
Market is pricing in (growth)
1.8%
vs 4.0% base
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 $80.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $87.46 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