Iridium Communications Inc. logo IRDM - Iridium Communications Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 5
HOLD 5
SELL 3
STRONG
SELL
0
| PRICE TARGET: $37.00 DETAILS
HIGH: $45.00
LOW: $26.00
MEDIAN: $40.00
CONSENSUS: $37.00
DOWNSIDE: 26.69%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 75% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 71.3% above fair value
Current Price $50.47
Bear Case $20.61 59.2% downside ($20.61 - $50.47) / $50.47 = -59.2% 4% stage 1 growth, 11% discount
Fair Value $29.46 41.6% downside ($29.46 - $50.47) / $50.47 = -41.6% 7% stage 1 growth, 11% discount
Bull Case $37.53 25.6% downside ($37.53 - $50.47) / $50.47 = -25.6% 9% stage 1 growth, 11% discount

Adjust Assumptions

7.2%
11.0%
3.0%

Key Value Driver

FCF growth rate (7% base case)

Terminal Value % of EV 36%
Implied Market Multiple 26.8x

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 $37.00 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $29.46 per share.

Warnings

Stock-based employee pay equals 45% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $37.00 (from 13 analysts). Our estimate is 25% 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