RDNT
RadNet, Inc.
$62.19
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 295.4% above fair value
You pay
$62.19
Bear
$0.00
Fair
$15.73
Bull
$503.30
Bear
$0.00
-100.0%
8% stage 1 growth, 12% discount
Fair
$15.73
-74.7%
14% stage 1 growth, 12% discount
Bull
$503.30
+709.3%
18% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
38%
Implied Market Multiple
134.1x
Market is pricing in (growth)
36.9%
vs 13.7% 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 $78.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $15.73 per share.
Warnings
Wall Street's average price target is $78.00 (from 11 analysts). Our estimate is 100% below 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