PLUS
ePlus inc.
$85.37
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 55.5% below fair value
You pay
$85.37
Bear
$160.07
Fair
$191.99
Bull
$220.61
Bear
$160.07
+87.5%
4% stage 1 growth, 11% discount
Fair
$191.99
+124.9%
7% stage 1 growth, 11% discount
Bull
$220.61
+158.4%
9% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
36%
Implied Market Multiple
6.9x
Summary
Using a two-stage FCF DCF with 7% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $191.99 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