Daily Journal Corporation logo DJCO - Daily Journal Corporation

Price: -- --
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 1.6% above fair value
Current Price $623.68
Bear Case $536.61 14.0% downside ($536.61 - $623.68) / $623.68 = -14.0% 7% stage 1 growth, 11% discount
Fair Value $613.64 1.6% downside ($613.64 - $623.68) / $623.68 = -1.6% 12% stage 1 growth, 11% discount
Bull Case $693.09 11.1% upside ($693.09 - $623.68) / $623.68 = 11.1% 15% stage 1 growth, 11% discount

Adjust Assumptions

11.9%
11.0%
3.0%

Key Value Driver

FCF growth rate (12% base case)

Terminal Value % of EV 40%
Implied Market Multiple 25.9x
Market is pricing in (growth) 12.4% vs our 11.9% base

Plain-Language Summary

Using a two-stage FCF DCF with 12% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $613.64 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