UNF
UniFirst Corporation
$265.47
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 82.0% above fair value
You pay
$265.47
Bear
$123.55
Fair
$145.89
Bull
$165.66
Bear
$123.55
-53.5%
4% stage 1 growth, 11% discount
Fair
$145.89
-45.0%
6% stage 1 growth, 11% discount
Bull
$165.66
-37.6%
8% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (6% base case)
Terminal Value % of EV
35%
Implied Market Multiple
33.4x
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 $202.00 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $145.89 per share.
Warnings
Wall Street's average price target is $202.00 (from 6 analysts). Our estimate is 35% 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