OMF
OneMain Holdings, Inc.
$53.48
Platform & Compounding FCF
65%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 87.8% below fair value
You pay
$53.48
Bear
$242.40
Fair
$440.01
Bull
$654.99
Bear
$242.40
+353.3%
8% stage 1 growth, 11% discount
Fair
$440.01
+722.8%
14% stage 1 growth, 11% discount
Bull
$654.99
+1124.7%
18% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
42%
Implied Market Multiple
8.9x
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 $68.29 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $440.01 per share.
Warnings
Wall Street's average price target is $68.29 (from 31 analysts). Our estimate is 778% above the consensus -- consider that gap carefully.
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