PRM
Perimeter Solutions, S.A.
$31.10
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 36.9% below fair value
You pay
$31.10
Bear
$28.12
Fair
$49.32
Bull
$75.85
Bear
$28.12
-9.6%
12% stage 1 growth, 12% discount
Fair
$49.32
+58.6%
20% stage 1 growth, 12% discount
Bull
$75.85
+143.9%
26% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (20% base case)
Terminal Value % of EV
42%
Implied Market Multiple
24.4x
Summary
Using a two-stage FCF DCF with 20% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $49.32 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