As of June 6, 2025, Concentrix Corp's estimated intrinsic value ranges from $33.49 to $140.12 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $92.64 | +64.5% |
| Discounted Cash Flow (5Y) | $64.04 | +13.7% |
| Dividend Discount Model (Multi-Stage) | $33.49 | -40.5% |
| Dividend Discount Model (Stable) | $54.61 | -3.0% |
| Earnings Power Value | $140.12 | +148.8% |
Is Concentrix Corp (CNXC) undervalued or overvalued?
With the current market price at $56.32, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Concentrix Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.09 | 1.26 |
| Cost of equity | 8.9% | 11.9% |
| Cost of debt | 5.6% | 7.0% |
| Tax rate | 25.5% | 27.4% |
| Debt/Equity ratio | 1.32 | 1.32 |
| After-tax WACC | 6.2% | 8.0% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $64 | $8,685M | 80.0% |
| 10-Year Growth | $93 | $10,512M | 66.2% |
| 5-Year EBITDA | $166 | $15,181M | 88.6% |
| 10-Year EBITDA | $188 | $16,574M | 78.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $947M |
| Discount Rate (WACC) | 8.0% - 6.2% |
| Enterprise Value | $11,814M - $15,275M |
| Net Debt | $4,594M |
| Equity Value | $7,220M - $10,681M |
| Outstanding Shares | 64M |
| Fair Value | $113 - $167 |
| Selected Fair Value | $140.12 |
| Metric | Value |
|---|---|
| Market Capitalization | $3598M |
| Enterprise Value | $8192M |
| Trailing P/E | 11.19 |
| Forward P/E | 16.22 |
| Trailing EV/EBITDA | 19.15 |
| Current Dividend Yield | 239.38% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.32 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $27.79 |
| Discounted Cash Flow (5Y) | 25% | $16.01 |
| Dividend Discount Model (Multi-Stage) | 20% | $6.70 |
| Dividend Discount Model (Stable) | 15% | $8.19 |
| Earnings Power Value | 10% | $14.01 |
| Weighted Average | 100% | $72.70 |
Based on our comprehensive valuation analysis, Concentrix Corp's weighted average intrinsic value is $72.70, which is approximately 29.1% above the current market price of $56.32.
Key investment considerations:
Given these factors, we believe Concentrix Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.