PKE
Park Aerospace Corp.
$32.34
Platform & Compounding FCF
70%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 142.4% above fair value
You pay
$32.34
Bear
$11.13
Fair
$13.34
Bull
$15.48
Bear
$11.13
-65.6%
6% stage 1 growth, 11% discount
Fair
$13.34
-58.7%
9% stage 1 growth, 11% discount
Bull
$15.48
-52.1%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
64.0x
Market is pricing in (growth)
24.5%
vs 9.4% base
Summary
Using a two-stage FCF DCF with 9% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $13.34 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