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: $70.00 DETAILS
HIGH: $70.00
LOW: $70.00
MEDIAN: $70.00
CONSENSUS: $70.00
UPSIDE: 63.86%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong
Trading 52.3% below fair value
Current Price $42.72
Bear Case $48.80 14.2% upside ($48.80 - $42.72) / $42.72 = 14.2% 11% stage 1 growth, 11% discount
Fair Value $89.55 109.6% upside ($89.55 - $42.72) / $42.72 = 109.6% 18% stage 1 growth, 11% discount
Bull Case $138.89 225.1% upside ($138.89 - $42.72) / $42.72 = 225.1% 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 19.5x

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 $70.00 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $89.55 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 $70.00 (from 17 analysts). Our estimate is 37% 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