SFL
SFL Corporation Ltd.
$12.28
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.3% below fair value
You pay
$12.28
Bear
$8.59
Fair
$18.14
Bull
$27.64
Bear
$8.59
-30.1%
6% stage 1 growth, 11% discount
Fair
$18.14
+47.7%
11% stage 1 growth, 11% discount
Bull
$27.64
+125.1%
14% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
39%
Implied Market Multiple
18.4x
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 $14.50 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $18.14 per share.
Warnings
Wall Street's average price target is $14.50 (from 9 analysts). Our estimate is 31% 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