ODC
Oil-Dri Corporation of America
$74.85
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 0.4% above fair value
You pay
$74.85
Bear
$53.03
Fair
$74.57
Bull
$96.48
Bear
$53.03
-29.2%
7% stage 1 growth, 11% discount
Fair
$74.57
-0.4%
11% stage 1 growth, 11% discount
Bull
$96.48
+28.9%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
40%
Implied Market Multiple
24.0x
Summary
Using a two-stage FCF DCF with 11% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $74.57 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