/
DCF Valuation
Base-case fair value
$859.12
Intrinsic $1145.49 · 25% MOS
Current price: $221.77
Base-case summary
Our base-case DCF for Cardinal Health Inc (CAH) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 22.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $5.5B in trailing free cash flow, this produces an intrinsic value of $1145.49 per share. A 25% safety margin gives a fair value of $859.12, suggesting the stock is currently 287% undervalued against the $221.77 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
$5.5B
Cash & equivalents
$2.8B
Total debt
$9.0B
Shares outstanding
237M