UTI
Universal Technical Institute, Inc.
$20.31
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 34.0% below fair value
You pay
$20.31
Bear
$18.17
Fair
$30.75
Bull
$45.16
Bear
$18.17
-10.5%
10% stage 1 growth, 11% discount
Fair
$30.75
+51.4%
16% stage 1 growth, 11% discount
Bull
$45.16
+122.4%
21% stage 1 growth, 11% discount
Adjust Assumptions
16.1%
11.0%
3.0%
Key Value Driver
FCF growth rate (16% base case)
Terminal Value % of EV
44%
Implied Market Multiple
23.3x
Market is pricing in (growth)
11.0%
vs 16.2% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$41.00
Divergence from AlphaVal
25%
Summary
Using a two-stage FCF DCF with 16% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $30.75 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