SLVM
Sylvamo Corporation
$38.10
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 46.5% below fair value
You pay
$38.10
Bear
$71.20
Fair
$71.20
Bull
$77.22
Bear
$71.20
+86.9%
3% stage 1 growth, 11% discount
Fair
$71.20
+86.9%
3% stage 1 growth, 11% discount
Bull
$77.22
+102.7%
4% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
8.1x
Summary
Using a two-stage FCF DCF with 3% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $71.20 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