Iridium Communications Inc. logo IRDM - Iridium Communications Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 6
HOLD 5
SELL 3
STRONG
SELL
0
| PRICE TARGET: $49.75 DETAILS
HIGH: $60.00
LOW: $40.00
MEDIAN: $49.50
CONSENSUS: $49.75
UPSIDE: 7.20%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 75% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 47.4% above fair value
Current Price $46.41
Bear Case $22.18 52.2% downside ($22.18 - $46.41) / $46.41 = -52.2% 4% stage 1 growth, 11% discount
Fair Value $31.48 32.2% downside ($31.48 - $46.41) / $46.41 = -32.2% 7% stage 1 growth, 11% discount
Bull Case $39.94 14.0% downside ($39.94 - $46.41) / $46.41 = -14.0% 9% stage 1 growth, 11% discount

Adjust Assumptions

7.0%
11.0%
3.0%

Key Value Driver

FCF growth rate (7% base case)

Terminal Value % of EV 36%
Implied Market Multiple 25.2x
Market is pricing in (growth) 12.1% vs our 7.0% 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 $49.75 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $31.48 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 $49.75 (from 14 analysts). Our estimate is 46% 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