PTCT
PTC Therapeutics, Inc.
$68.81
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 42.4% below fair value
You pay
$68.81
Bear
$119.40
Fair
$119.40
Bull
$126.34
Bear
$119.40
+73.5%
3% stage 1 growth, 11% discount
Fair
$119.40
+73.5%
3% stage 1 growth, 11% discount
Bull
$126.34
+83.6%
4% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
6.1x
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 $98.00 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $119.40 per share.
Warnings
Wall Street's average price target is $98.00 (from 26 analysts). Our estimate is 29% above 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