ACI Worldwide, Inc. logo ACIW - ACI Worldwide, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 11
HOLD 5
SELL 1
STRONG
SELL
0
| PRICE TARGET: $64.00 DETAILS
HIGH: $64.00
LOW: $64.00
MEDIAN: $64.00
CONSENSUS: $64.00
UPSIDE: 12.20%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Moderate
Trading 35.2% below fair value
Current Price $57.04
Bear Case $47.98 15.9% downside ($47.98 - $57.04) / $57.04 = -15.9% 11% stage 1 growth, 11% discount
Fair Value $88.05 54.4% upside ($88.05 - $57.04) / $57.04 = 54.4% 18% stage 1 growth, 11% discount
Bull Case $136.57 139.4% upside ($136.57 - $57.04) / $57.04 = 139.4% 24% stage 1 growth, 11% discount

Adjust Assumptions

18.4%
11.0%
3.0%

Key Value Driver

FCF growth rate (18% base case)

Terminal Value % of EV 45%
Implied Market Multiple 25.2x
Market is pricing in (growth) 12.1% vs our 18.4% base

Plain-Language 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 $64.00 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $88.05 per share.

Warnings

Stock-based employee pay equals 31% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $64.00 (from 17 analysts). Our estimate is 50% above the consensus -- consider that gap carefully.

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