PLTK
Playtika Holding Corp.
$4.01
Platform & Compounding FCF
80%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 56.8% below fair value
You pay
$4.01
Bear
$9.18
Fair
$9.29
Bull
$10.23
Bear
$9.18
+128.7%
3% stage 1 growth, 11% discount
Fair
$9.29
+131.4%
3% stage 1 growth, 11% discount
Bull
$10.23
+154.7%
4% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
7.1x
Market is pricing in (growth)
-5.4%
vs 3.1% base
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 $3.50 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $9.29 per share.
Warnings
Wall Street's average price target is $3.50 (from 17 analysts). Our estimate is 221% above the consensus -- consider that gap carefully.
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