RAMP
LiveRamp Holdings, Inc.
$37.88
Platform & Compounding FCF
80%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 12.3% below fair value
You pay
$37.88
Bear
$33.25
Fair
$43.20
Bull
$53.09
Bear
$33.25
-12.2%
6% stage 1 growth, 11% discount
Fair
$43.20
+14.1%
10% stage 1 growth, 11% discount
Bull
$53.09
+40.1%
14% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
18.5x
Market is pricing in (growth)
7.9%
vs 10.4% 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 $38.50 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $43.20 per share.
Warnings
Stock-based employee pay equals 57% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
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