REX
REX American Resources Corporation
$48.77
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 13.4% below fair value
You pay
$48.77
Bear
$42.81
Fair
$56.30
Bull
$70.16
Bear
$42.81
-12.2%
7% stage 1 growth, 11% discount
Fair
$56.30
+15.4%
12% stage 1 growth, 11% discount
Bull
$70.16
+43.9%
15% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (12% base case)
Terminal Value % of EV
40%
Implied Market Multiple
20.6x
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