RRX
Regal Rexnord Corporation
$214.03
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 31.4% below fair value
You pay
$214.03
Bear
$177.82
Fair
$312.00
Bull
$460.44
Bear
$177.82
-16.9%
9% stage 1 growth, 11% discount
Fair
$312.00
+45.8%
15% stage 1 growth, 11% discount
Bull
$460.44
+115.1%
19% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (15% base case)
Terminal Value % of EV
43%
Implied Market Multiple
21.7x
Market is pricing in (growth)
10.1%
vs 14.7% 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 $254.50 from 22 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $312.00 per share.
Warnings
Wall Street's average price target is $254.50 (from 22 analysts). Our estimate is 30% 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