PRM
Perimeter Solutions, Inc.
$34.27
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 22.9% below fair value
You pay
$34.27
Bear
$23.27
Fair
$44.47
Bull
$71.00
Bear
$23.27
-32.1%
12% stage 1 growth, 12% discount
Fair
$44.47
+29.8%
20% stage 1 growth, 12% discount
Bull
$71.00
+107.1%
26% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (20% base case)
Terminal Value % of EV
42%
Implied Market Multiple
31.1x
Market is pricing in (growth)
16.8%
vs 20.1% base
Summary
Using a two-stage FCF DCF with 20% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $44.47 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