RSI
Rush Street Interactive, Inc.
$26.36
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 40.8% below fair value
You pay
$26.36
Bear
$26.54
Fair
$44.55
Bull
$66.74
Bear
$26.54
+0.7%
12% stage 1 growth, 12% discount
Fair
$44.55
+69.0%
19% stage 1 growth, 12% discount
Bull
$66.74
+153.2%
25% stage 1 growth, 12% discount
Adjust Assumptions
19.5%
12.0%
3.0%
Key Value Driver
FCF growth rate (19% base case)
Terminal Value % of EV
42%
Implied Market Multiple
21.1x
Market is pricing in (growth)
11.6%
vs 19.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$35.00
Divergence from AlphaVal
27%
Summary
Using a two-stage FCF DCF with 19% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $44.55 per share.
Warnings
Stock-based employee pay equals 79% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $35.00 (from 13 analysts). Our estimate is 27% 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