IRDM - Iridium Communications Inc.
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$37.00
DETAILS
HIGH:
$45.00
LOW:
$26.00
MEDIAN:
$40.00
CONSENSUS:
$37.00
DOWNSIDE:
26.69%
AlphaVal
Deterministic, archetype-aware fair value
Platform & Compounding FCF
75% confidence
Primary model: Two-stage FCF DCF
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