VEEV
Veeva Systems Inc.
$160.17
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 40.8% below fair value
You pay
$160.17
Bear
$178.82
Fair
$270.34
Bull
$377.01
Bear
$178.82
+11.6%
10% stage 1 growth, 11% discount
Fair
$270.34
+68.8%
17% stage 1 growth, 11% discount
Bull
$377.01
+135.4%
22% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (17% base case)
Terminal Value % of EV
44%
Implied Market Multiple
19.1x
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 $276.57 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $270.34 per share.
Warnings
Stock-based employee pay equals 52% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
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