RAMP
LiveRamp Holdings, Inc.
$37.70
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 39.6% below fair value
You pay
$37.70
Bear
$47.39
Fair
$62.42
Bull
$77.33
Bear
$47.39
+25.7%
6% stage 1 growth, 11% discount
Fair
$62.42
+65.6%
10% stage 1 growth, 11% discount
Bull
$77.33
+105.1%
14% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
11.2x
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 $62.42 per share.
Warnings
Wall Street's average price target is $38.50 (from 12 analysts). Our estimate is 78% 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