PRM
Perimeter Solutions, Inc.
$27.70
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 47.4% below fair value
You pay
$27.70
Bear
$28.14
Fair
$52.69
Bull
$83.39
Bear
$28.14
+1.6%
12% stage 1 growth, 12% discount
Fair
$52.69
+90.2%
20% stage 1 growth, 12% discount
Bull
$83.39
+201.1%
26% stage 1 growth, 12% discount
Adjust Assumptions
20.1%
12.0%
3.0%
Key Value Driver
FCF growth rate (20% base case)
Terminal Value % of EV
42%
Implied Market Multiple
21.6x
Market is pricing in (growth)
11.9%
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 $52.69 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