PLPC
Preformed Line Products Company
$346.39
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 199.4% above fair value
You pay
$346.39
Bear
$94.23
Fair
$115.68
Bull
$135.39
Bear
$94.23
-72.8%
4% stage 1 growth, 11% discount
Fair
$115.68
-66.6%
7% stage 1 growth, 11% discount
Bull
$135.39
-60.9%
10% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
37%
Implied Market Multiple
56.0x
Market is pricing in (growth)
22.7%
vs 7.5% base
Summary
Using a two-stage FCF DCF with 7% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $115.68 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