RMNI
Rimini Street, Inc.
$5.01
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 66.3% below fair value
You pay
$5.01
Bear
$10.28
Fair
$14.88
Bull
$19.70
Bear
$10.28
+105.3%
8% stage 1 growth, 11% discount
Fair
$14.88
+196.9%
13% stage 1 growth, 11% discount
Bull
$19.70
+293.3%
16% stage 1 growth, 11% discount
Adjust Assumptions
12.7%
11.0%
3.0%
Key Value Driver
FCF growth rate (13% base case)
Terminal Value % of EV
41%
Implied Market Multiple
8.5x
Market is pricing in (growth)
-2.9%
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
108%
Summary
Using a two-stage FCF DCF with 13% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $14.88 per share.
Warnings
Wall Street's average price target is $7.17 (from 5 analysts). Our estimate is 108% 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