PLNT
Planet Fitness, Inc.
$52.05
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 42.7% below fair value
You pay
$52.05
Bear
$58.46
Fair
$90.85
Bull
$126.70
Bear
$58.46
+12.3%
9% stage 1 growth, 11% discount
Fair
$90.85
+74.5%
15% stage 1 growth, 11% discount
Bull
$126.70
+143.4%
19% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (15% base case)
Terminal Value % of EV
43%
Implied Market Multiple
16.8x
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 $77.88 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $90.85 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