MMYT
MakeMyTrip Limited
$55.62
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 34.5% below fair value
You pay
$55.62
Bear
$46.59
Fair
$84.86
Bull
$130.66
Bear
$46.59
-16.2%
11% stage 1 growth, 11% discount
Fair
$84.86
+52.6%
18% stage 1 growth, 11% discount
Bull
$130.66
+134.9%
23% stage 1 growth, 11% discount
Adjust Assumptions
18.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (18% base case)
Terminal Value % of EV
45%
Implied Market Multiple
26.7x
Market is pricing in (growth)
12.9%
vs 18.0% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$77.00
Divergence from AlphaVal
10%
Summary
Using a two-stage FCF DCF with 18% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $84.86 per share.
Warnings
Stock-based employee pay equals 44% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
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