Mayville Engineering Company, Inc. logo MEC - Mayville Engineering Company, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 5
HOLD 2
SELL 0
STRONG
SELL
0
| PRICE TARGET: $33.00 DETAILS
HIGH: $36.00
LOW: $30.00
MEDIAN: $33.00
CONSENSUS: $33.00
UPSIDE: 8.95%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Moderate
Trading 23.2% above fair value
Current Price $30.29
Bear Case $18.63 38.5% downside ($18.63 - $30.29) / $30.29 = -38.5% 5% stage 1 growth, 11% discount
Fair Value $24.59 18.8% downside ($24.59 - $30.29) / $30.29 = -18.8% 9% stage 1 growth, 11% discount
Bull Case $30.27 0.1% downside ($30.27 - $30.29) / $30.29 = -0.1% 12% stage 1 growth, 11% discount

Adjust Assumptions

8.9%
11.0%
3.0%

Key Value Driver

FCF growth rate (9% base case)

Terminal Value % of EV 38%
Implied Market Multiple 26.3x
Market is pricing in (growth) 12.7% vs our 8.8% 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 $33.00 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $24.59 per share.

Warnings

Wall Street's average price target is $33.00 (from 7 analysts). Our estimate is 32% 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