ODC
Oil-Dri Corporation of America
$74.01
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 2.2% above fair value
You pay
$74.01
Bear
$54.01
Fair
$72.40
Bull
$90.51
Bear
$54.01
-27.0%
6% stage 1 growth, 11% discount
Fair
$72.40
-2.2%
10% stage 1 growth, 11% discount
Bull
$90.51
+22.3%
13% stage 1 growth, 11% discount
Adjust Assumptions
10.1%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
22.3x
Market is pricing in (growth)
10.4%
vs 10.1% base
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $72.40 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