SSNC
SS&C Technologies Holdings, Inc.
$82.01
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.2% below fair value
You pay
$82.01
Bear
$98.46
Fair
$121.04
Bull
$141.03
Bear
$98.46
+20.1%
4% stage 1 growth, 11% discount
Fair
$121.04
+47.6%
6% stage 1 growth, 11% discount
Bull
$141.03
+72.0%
8% stage 1 growth, 11% discount
Adjust Assumptions
6.1%
11.0%
3.0%
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
35%
Implied Market Multiple
11.6x
Market is pricing in (growth)
1.5%
vs 6.1% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (24 analysts)
$98.20
Divergence from AlphaVal
23%
Summary
Using a two-stage FCF DCF with 6% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $121.04 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