VIAC
Paramount Global
$29.58
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 37.5% below fair value
You pay
$29.58
Bear
$21.54
Fair
$47.32
Bull
$77.12
Bear
$21.54
-27.2%
10% stage 1 growth, 12% discount
Fair
$47.32
+60.0%
17% stage 1 growth, 12% discount
Bull
$77.12
+160.7%
22% stage 1 growth, 12% discount
Adjust Assumptions
16.8%
12.0%
3.0%
Key Value Driver
FCF growth rate (17% base case)
Terminal Value % of EV
40%
Implied Market Multiple
22.7x
Market is pricing in (growth)
12.5%
vs 16.8% base
Summary
Using a two-stage FCF DCF with 17% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $47.32 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