NXT
Nextpower Inc.
$130.50
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 11.0% above fair value
You pay
$130.50
Bear
$75.92
Fair
$117.52
Bull
$165.08
Bear
$75.92
-41.8%
10% stage 1 growth, 12% discount
Fair
$117.52
-9.9%
16% stage 1 growth, 12% discount
Bull
$165.08
+26.5%
21% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (16% base case)
Terminal Value % of EV
39%
Implied Market Multiple
36.2x
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 $142.80 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $117.52 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