Liftoff Mobile (LFTO) Fair Value & DCF
LFTO$24.44+5.73 +30.63%
Market cap$4.14BEnterprise value—Revenue (TTM)—Market position—
LFTO fair value $39.76. Price $24.44. Price is 39% below fair value.
Worked example
Cash-flow value. Starting free cash flow is $1.40 a share. Years 1 to 5 grow at 20.00%. Years 6 to 10 fade that rate in a straight line to 3% terminal growth. The discount rate is 8.70% (beta 0.80). It is beta-adjusted and capped at 12%. The cash-flow value is $55.48 a share.
Earnings value. Next-twelve-months earnings per share of $1.25 times 19.20 is $24.05. The peer group is Communication Services, 24 companies worth at least $10 billion. This stock has no 10-year median P/E, so the peer median of 19.2 is kept between 8 and 30, which is 19.20.
Fair value is the average of the two, $39.76. The price is $24.44, which is 38.5% below fair value.