LOAR
Loar Holdings Inc.
$62.34
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 84.4% above fair value
You pay
$62.34
Bear
$20.89
Fair
$33.81
Bull
$48.74
Bear
$20.89
-66.5%
10% stage 1 growth, 11% discount
Fair
$33.81
-45.8%
17% stage 1 growth, 11% discount
Bull
$48.74
-21.8%
21% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (17% base case)
Terminal Value % of EV
44%
Implied Market Multiple
65.5x
Summary
Using a two-stage FCF DCF with 17% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $33.81 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