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DCF Valuation
Base-case fair value
$49.00
Intrinsic $65.33 · 25% MOS
Current price: $42.80
Base-case summary
Our base-case DCF for Aci Worldwide, Inc. (ACIW) projects 10 years of free cash flow growth at 8.1% for years 1–5 and 4.1% for years 6–10, anchored to 8.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $295M in trailing free cash flow, this produces an intrinsic value of $65.33 per share. A 25% safety margin gives a fair value of $49.00, suggesting the stock is currently 14% undervalued against the $42.80 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$295M
Cash & equivalents
$162M
Total debt
$837M
Shares outstanding
103M