RMNI
Rimini Street, Inc.
$3.63
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 72.1% below fair value
You pay
$3.63
Bear
$9.20
Fair
$13.02
Bull
$17.03
Bear
$9.20
+153.4%
8% stage 1 growth, 11% discount
Fair
$13.02
+258.6%
13% stage 1 growth, 11% discount
Bull
$17.03
+369.1%
16% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (13% base case)
Terminal Value % of EV
41%
Implied Market Multiple
5.2x
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 $7.17 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $13.02 per share.
Warnings
Wall Street's average price target is $7.17 (from 5 analysts). Our estimate is 102% 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