SXI
Standex International Corporation
$255.82
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 265.3% above fair value
You pay
$255.82
Bear
$22.09
Fair
$70.03
Bull
$111.76
Bear
$22.09
-91.4%
3% stage 1 growth, 11% discount
Fair
$70.03
-72.6%
6% stage 1 growth, 11% discount
Bull
$111.76
-56.3%
7% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
35%
Implied Market Multiple
87.2x
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 $304.50 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $70.03 per share.
Warnings
Wall Street's average price target is $304.50 (from 10 analysts). Our estimate is 96% below 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