PSTG Everpure, Inc
$86.22
Platform & Compounding FCF 85%
Two-stage FCF DCF
Strong · Conviction

Overvalued

Trading 89.3% above fair value

You pay $86.22
Bear $30.39
Fair $45.54
Bull $63.07
Bear $30.39 -64.7% 10% stage 1 growth, 12% discount
Fair $45.54 -47.2% 17% stage 1 growth, 12% discount
Bull $63.07 -26.9% 22% stage 1 growth, 12% discount

Key Value Driver

FCF growth rate (17% base case)

Terminal Value % of EV 40%
Implied Market Multiple 106.7x

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 $86.63 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $45.54 per share.

Warnings

Stock-based employee pay equals 256% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $86.63 (from 32 analysts). Our estimate is 68% below 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