PTCT
PTC Therapeutics, Inc.
$78.67
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.5% below fair value
You pay
$78.67
Bear
$112.88
Fair
$116.52
Bull
$124.47
Bear
$112.88
+43.5%
3% stage 1 growth, 11% discount
Fair
$116.52
+48.1%
4% stage 1 growth, 11% discount
Bull
$124.47
+58.2%
5% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
33%
Implied Market Multiple
7.8x
Market is pricing in (growth)
-4.0%
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 $116.52 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