OSIS
OSI Systems, Inc.
$194.86
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.8% below fair value
You pay
$194.86
Bear
$206.18
Fair
$289.92
Bull
$371.84
Bear
$206.18
+5.8%
6% stage 1 growth, 11% discount
Fair
$289.92
+48.8%
10% stage 1 growth, 11% discount
Bull
$371.84
+90.8%
13% stage 1 growth, 11% discount
Adjust Assumptions
9.9%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
15.2x
Market is pricing in (growth)
5.3%
vs 9.9% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (18 analysts)
$269.50
Divergence from AlphaVal
8%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $289.92 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