/
DCF Valuation
Base-case fair value
$337.97
Intrinsic $450.63 · 25% MOS
Current price: $305.66
Base-case summary
Our base-case DCF for Acuity Inc. (De) (AYI) projects 10 years of free cash flow growth at 8.9% for years 1–5 and 4.5% for years 6–10, anchored to 8.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $558M in trailing free cash flow, this produces an intrinsic value of $450.63 per share. A 25% safety margin gives a fair value of $337.97, suggesting the stock is currently 11% undervalued against the $305.66 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
$558M
Cash & equivalents
$273M
Total debt
$808M
Shares outstanding
31M