Frontdoor, Inc. logo FTDR - Frontdoor, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 5
HOLD 7
SELL 0
STRONG
SELL
0
| PRICE TARGET: $73.00 DETAILS
HIGH: $82.00
LOW: $67.00
MEDIAN: $70.00
CONSENSUS: $73.00
UPSIDE: 2.11%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Moderate
Trading 33.1% below fair value
Current Price $71.49
Bear Case $71.96 0.7% upside ($71.96 - $71.49) / $71.49 = 0.7% 7% stage 1 growth, 12% discount
Fair Value $106.78 49.4% upside ($106.78 - $71.49) / $71.49 = 49.4% 12% stage 1 growth, 12% discount
Bull Case $142.97 100.0% upside ($142.97 - $71.49) / $71.49 = 100.0% 16% stage 1 growth, 12% discount

Adjust Assumptions

12.4%
12.0%
3.0%

Key Value Driver

FCF growth rate (12% base case)

Terminal Value % of EV 37%
Implied Market Multiple 14.6x
Market is pricing in (growth) 6.4% vs our 12.4% 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 $73.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $106.78 per share.

Warnings

Wall Street's average price target is $73.00 (from 12 analysts). Our estimate is 58% 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