RDNT
RadNet, Inc.
$70.05
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 488.6% above fair value
You pay
$70.05
Bear
$3.42
Fair
$11.90
Bull
$21.01
Bear
$3.42
-95.1%
8% stage 1 growth, 12% discount
Fair
$11.90
-83.0%
14% stage 1 growth, 12% discount
Bull
$21.01
-70.0%
18% stage 1 growth, 12% discount
Adjust Assumptions
13.7%
12.0%
3.0%
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
38%
Implied Market Multiple
80.6x
Market is pricing in (growth)
29.8%
vs 13.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$65.00
Divergence from AlphaVal
82%
Summary
Using a two-stage FCF DCF with 14% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $11.90 per share.
Warnings
Wall Street's average price target is $65.00 (from 11 analysts). Our estimate is 82% 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