REX
REX American Resources Corporation
$47.32
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 15.9% below fair value
You pay
$47.32
Bear
$42.81
Fair
$56.30
Bull
$70.16
Bear
$42.81
-9.5%
7% stage 1 growth, 11% discount
Fair
$56.30
+19.0%
12% stage 1 growth, 11% discount
Bull
$70.16
+48.3%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
19.8x
Market is pricing in (growth)
8.8%
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