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DCF Valuation
Base-case fair value
$121.75
Intrinsic $162.34 · 25% MOS
Current price: $66.36
Base-case summary
Our base-case DCF for Booz Allen Hamilton Holding Corp (BAH) projects 10 years of free cash flow growth at 7.7% for years 1–5 and 3.9% for years 6–10, anchored to 7.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $951M in trailing free cash flow, this produces an intrinsic value of $162.34 per share. A 25% safety margin gives a fair value of $121.75, suggesting the stock is currently 83% undervalued against the $66.36 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
$951M
Cash & equivalents
$728M
Total debt
$4.1B
Shares outstanding
122M