Rapid7, Inc. logo RPD - Rapid7, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 16
HOLD 19
SELL 2
STRONG
SELL
0
| PRICE TARGET: $8.63 DETAILS
HIGH: $16.00
LOW: $6.00
MEDIAN: $8.00
CONSENSUS: $8.63
UPSIDE: 18.71%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Moderate
Trading 26.8% above fair value
Current Price $7.27
Bear Case $5.73 21.2% downside ($5.73 - $7.27) / $7.27 = -21.2% 3% stage 1 growth, 11% discount
Fair Value $5.73 21.2% downside ($5.73 - $7.27) / $7.27 = -21.2% 3% stage 1 growth, 11% discount
Bull Case $6.83 6.1% downside ($6.83 - $7.27) / $7.27 = -6.1% 4% stage 1 growth, 11% discount

Adjust Assumptions

3.0%
11.0%
3.0%

Key Value Driver

FCF growth rate (3% base case)

Terminal Value % of EV 33%
Implied Market Multiple 15.7x

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 $8.63 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $5.73 per share.

Warnings

Stock-based employee pay equals 446% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $8.63 (from 37 analysts). Our estimate is 48% 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