WRLD
World Acceptance Corporation
$174.44
Platform & Compounding FCF
70%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 76.8% below fair value
You pay
$174.44
Bear
$629.56
Fair
$750.29
Bull
$854.12
Bear
$629.56
+260.9%
3% stage 1 growth, 11% discount
Fair
$750.29
+330.1%
5% stage 1 growth, 11% discount
Bull
$854.12
+389.6%
6% stage 1 growth, 11% discount
Adjust Assumptions
5.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (5% base case)
Terminal Value % of EV
34%
Implied Market Multiple
5.3x
Market is pricing in (growth)
-10.1%
vs 5.0% base
Summary
Using a two-stage FCF DCF with 5% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $750.29 per share.
Warnings
Stock-based employee pay equals 56% 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