PLPC
Preformed Line Products Company
$334.94
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 180.6% above fair value
You pay
$334.94
Bear
$97.18
Fair
$119.35
Bull
$139.73
Bear
$97.18
-71.0%
4% stage 1 growth, 11% discount
Fair
$119.35
-64.4%
7% stage 1 growth, 11% discount
Bull
$139.73
-58.3%
10% stage 1 growth, 11% discount
Adjust Assumptions
7.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
37%
Implied Market Multiple
52.3x
Market is pricing in (growth)
21.8%
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 $119.35 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