TDY
Teledyne Technologies Incorporated
$620.45
Platform & Compounding FCF
65%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 5.7% below fair value
You pay
$620.45
Bear
$406.14
Fair
$658.20
Bull
$936.66
Bear
$406.14
-34.5%
9% stage 1 growth, 11% discount
Fair
$658.20
+6.1%
15% stage 1 growth, 11% discount
Bull
$936.66
+51.0%
19% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (15% base case)
Terminal Value % of EV
43%
Implied Market Multiple
29.7x
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 $713.00 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $658.20 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