SEB
Seaboard Corporation
$3,922.63
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 177.0% above fair value
You pay
$3,922.63
Bear
$1,064.73
Fair
$1,415.89
Bull
$1,729.97
Bear
$1,064.73
-72.9%
4% stage 1 growth, 11% discount
Fair
$1,415.89
-63.9%
6% stage 1 growth, 11% discount
Bull
$1,729.97
-55.9%
8% stage 1 growth, 11% discount
Adjust Assumptions
6.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
36%
Implied Market Multiple
37.0x
Market is pricing in (growth)
17.2%
vs 6.5% base
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $1415.89 per share.
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