Intrinsic Value (DCF)
Current$22.68
→
Intrinsic$27.85
+23%
$18.74$27.85$45.14
Market implies 19% growth for 5 years
PRMB shows 23% potential upside using 25% growth — reasonable if fundamentals hold.
At $23, the market prices in continued high-teens cash flow growth (19%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $19 → Bull $45. Current price implies expectations below the base case, but well above the bear case.
| Discount ↓Growth → | 21% | 23% | 25% | 27% |
|---|---|---|---|---|
| 8% | $34 | $37 | $40 | $43 |
| 10% | $24 | $26 | $28 | $30 |
| 12% | $18 | $19 | $21 | $23 |
| 14% | $14 | $15 | $17 | $18 |
Bull Case
- Bull case ($45) offers 99% upside at 30% growth, 9% discount
- 19% margin of safety vs. base case estimate
- Market-implied growth (19%) ≤ historical CAGR (25%)
Bear Case
- Bear case ($19) implies 17% downside at 20% growth, 12% discount
- Using 25% growth — aggressive, watch for mean reversion
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5-Year Free Cash Flow Projection
Year 1$378.63M
Year 2$473.28M
Year 3$591.60M
Year 4$739.50M
Year 5$924.38M
Terminal$13.60B
📐 Model Inputs
Growth Rate25.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$302.90MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.