RPAY
Repay Holdings Corporation
$4.06
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 76.6% below fair value
You pay
$4.06
Bear
$9.87
Fair
$17.38
Bull
$25.89
Bear
$9.87
+143.1%
10% stage 1 growth, 12% discount
Fair
$17.38
+328.2%
16% stage 1 growth, 12% discount
Bull
$25.89
+537.6%
21% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (16% base case)
Terminal Value % of EV
39%
Implied Market Multiple
8.8x
Market is pricing in (growth)
-0.9%
vs 15.8% base
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 $4.38 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $17.38 per share.
Warnings
Wall Street's average price target is $4.38 (from 17 analysts). Our estimate is 396% 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