PTCT
PTC Therapeutics, Inc.
$77.84
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 33.1% below fair value
You pay
$77.84
Bear
$112.93
Fair
$116.34
Bull
$124.20
Bear
$112.93
+45.1%
3% stage 1 growth, 11% discount
Fair
$116.34
+49.4%
3% stage 1 growth, 11% discount
Bull
$124.20
+59.6%
5% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
7.7x
Market is pricing in (growth)
-4.2%
vs 3.5% base
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 $101.14 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $116.34 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