RDVT
Red Violet, Inc.
$80.12
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 21.2% above fair value
You pay
$80.12
Bear
$36.68
Fair
$66.10
Bull
$103.79
Bear
$36.68
-54.2%
13% stage 1 growth, 12% discount
Fair
$66.10
-17.5%
21% stage 1 growth, 12% discount
Bull
$103.79
+29.5%
27% stage 1 growth, 12% discount
Adjust Assumptions
21.1%
12.0%
3.0%
Key Value Driver
FCF growth rate (21% base case)
Terminal Value % of EV
43%
Implied Market Multiple
52.1x
Market is pricing in (growth)
23.9%
vs 21.1% base
Summary
Using a two-stage FCF DCF with 21% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $66.10 per share.
Warnings
Stock-based employee pay equals 49% 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