WRLD
World Acceptance Corporation
$159.91
Platform & Compounding FCF
70%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 74.3% below fair value
You pay
$159.91
Bear
$520.34
Fair
$622.75
Bull
$710.82
Bear
$520.34
+225.4%
3% stage 1 growth, 11% discount
Fair
$622.75
+289.4%
5% stage 1 growth, 11% discount
Bull
$710.82
+344.5%
6% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (5% base case)
Terminal Value % of EV
34%
Implied Market Multiple
5.8x
Summary
Using a two-stage FCF DCF with 5% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $622.75 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