RSI
Rush Street Interactive, Inc.
$15.90
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 59.5% below fair value
You pay
$15.90
Bear
$23.39
Fair
$39.26
Bull
$58.81
Bear
$23.39
+47.1%
12% stage 1 growth, 12% discount
Fair
$39.26
+146.9%
19% stage 1 growth, 12% discount
Bull
$58.81
+269.9%
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
13.5x
Market is pricing in (growth)
5.4%
vs 19.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$31.60
Divergence from AlphaVal
24%
Summary
Using a two-stage FCF DCF with 19% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $39.26 per share.
Warnings
Stock-based employee pay equals 79% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
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