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DCF Valuation
Base-case fair value
$521.28
Intrinsic $695.04 · 25% MOS
Current price: $436.03
Base-case summary
Our base-case DCF for Chemed Corp (CHE) projects 10 years of free cash flow growth at 8.6% for years 1–5 and 4.3% for years 6–10, anchored to 8.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $377M in trailing free cash flow, this produces an intrinsic value of $695.04 per share. A 25% safety margin gives a fair value of $521.28, suggesting the stock is currently 20% undervalued against the $436.03 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
$377M
Cash & equivalents
$17M
Total debt
$237M
Shares outstanding
14M