RIGL
Rigel Pharmaceuticals, Inc.
$29.01
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 55.8% below fair value
You pay
$29.01
Bear
$50.99
Fair
$65.59
Bull
$79.64
Bear
$50.99
+75.8%
6% stage 1 growth, 11% discount
Fair
$65.59
+126.1%
9% stage 1 growth, 11% discount
Bull
$79.64
+174.5%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
6.6x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $27.33 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $65.59 per share.
Warnings
Wall Street's average price target is $27.33 (from 15 analysts). Our estimate is 187% above 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