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DCF Valuation
Base-case fair value
$52.79
Intrinsic $70.39 · 25% MOS
Current price: $17.93
Base-case summary
Our base-case DCF for Chewy, Inc. (CHWY) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 132.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $585M in trailing free cash flow, this produces an intrinsic value of $70.39 per share. A 25% safety margin gives a fair value of $52.79, suggesting the stock is currently 194% undervalued against the $17.93 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
$585M
Cash & equivalents
$520M
Total debt
$523M
Shares outstanding
419M