Cornerstone is a provider of foreign exchange (forex), payment and currency risk management services, with a focus on small and medium-sized enterprises (SMEs) internationally. As one of a handful of UK-listed companies in this segment, the company is well-placed to act as a consolidator in a highly fragmented marketplace. The core technology platform is a source of competitive differentiation in the SME segment, and this is being evolved to integrate with accounting systems, in turn evolving the revenue streams from transaction-based to subscription-based revenue. Based on our estimates for two scenarios, our DCF-implied fair equity value upside potential ranges from 140% to 360%.
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