Is HEI-A undervalued?

AlphaMadera's AlphaVal page classifies HEICO Corporation as a Platform & Compounding FCF business and values it using Two-stage FCF DCF, then compares the result to the current market price to flag HEI-A as undervalued, fairly valued, or overvalued.

What is HEICO Corporation's fair value?

Fair value for HEI-A comes from a Two-stage FCF DCF model -- the approach AlphaVal selected for this company's Platform & Compounding FCF classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value HEI-A?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. HEI-A was classified as Platform & Compounding FCF and is valued using Two-stage FCF DCF, built from HEI-A's most recent reported fundamentals.

HEI-A - HEICO Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $403.33 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Fair Value Mild

Trading 13.3% below fair value

Current Price $230.88

Bear Case $145.71 36.9% downside ($145.71 - $230.88) / $230.88 = -36.9% 11% stage 1 growth, 11% discount

Fair Value $266.30 15.3% upside ($266.30 - $230.88) / $230.88 = 15.3% 19% stage 1 growth, 11% discount

Bull Case $413.12 78.9% upside ($413.12 - $230.88) / $230.88 = 78.9% 24% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

18.7%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (19% base case)

Terminal Value % of EV 45%

Implied Market Multiple 36.2x

Market is pricing in (growth) 16.9% vs our 18.7% base

Plain-Language Summary

Using a two-stage FCF DCF with 19% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $266.30 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (20 analysts) $403.33

Analyst Range $390.00 – $410.00

Divergence from AlphaVal 34%

Warnings

ℹ Wall Street's average price target is $403.33 (from 20 analysts). Our estimate is 34% below 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