REX
REX American Resources Corporation
$42.09
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 25.2% below fair value
You pay
$42.09
Bear
$42.81
Fair
$56.30
Bull
$70.16
Bear
$42.81
+1.7%
7% stage 1 growth, 11% discount
Fair
$56.30
+33.8%
12% stage 1 growth, 11% discount
Bull
$70.16
+66.7%
15% stage 1 growth, 11% discount
Adjust Assumptions
11.8%
11.0%
3.0%
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
17.0x
Market is pricing in (growth)
6.8%
vs 11.8% base
Summary
Using a two-stage FCF DCF with 12% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $56.30 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