RBA
RB Global, Inc.
$104.72
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 3.0% below fair value
You pay
$104.72
Bear
$55.93
Fair
$108.01
Bull
$168.36
Bear
$55.93
-46.6%
10% stage 1 growth, 11% discount
Fair
$108.01
+3.1%
17% stage 1 growth, 11% discount
Bull
$168.36
+60.8%
22% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (17% base case)
Terminal Value % of EV
44%
Implied Market Multiple
33.2x
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 $92.30 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $108.01 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