RMNI
Rimini Street, Inc.
$4.09
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 68.5% below fair value
You pay
$4.09
Bear
$9.07
Fair
$12.97
Bull
$17.04
Bear
$9.07
+121.9%
8% stage 1 growth, 12% discount
Fair
$12.97
+217.0%
13% stage 1 growth, 12% discount
Bull
$17.04
+316.5%
16% stage 1 growth, 12% discount
Adjust Assumptions
12.7%
12.0%
3.0%
Key Value Driver
FCF growth rate (13% base case)
Terminal Value % of EV
37%
Implied Market Multiple
6.8x
Market is pricing in (growth)
-4.6%
vs 12.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (5 analysts)
$7.17
Divergence from AlphaVal
81%
Summary
Using a two-stage FCF DCF with 13% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $12.97 per share.
Warnings
Wall Street's average price target is $7.17 (from 5 analysts). Our estimate is 81% 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