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DCF Valuation
Base-case fair value
$4.16
Intrinsic $5.54 · 25% MOS
Current price: $4.80
Base-case summary
Our base-case DCF for Clover Health Investments, Corp. (CLOV) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 28.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $55M in trailing free cash flow, this produces an intrinsic value of $5.54 per share. A 25% safety margin gives a fair value of $4.16, suggesting the stock is currently 13% overvalued against the $4.80 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
$55M
Cash & equivalents
$197M
Total debt
$0
Shares outstanding
533M