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DCF Valuation
Base-case fair value
$51.59
Intrinsic $68.79 · 25% MOS
Current price: $80.69
Base-case summary
Our base-case DCF for Csg Systems International Inc (CSGS) projects 10 years of free cash flow growth at 2.9% for years 1–5 and 1.5% for years 6–10, anchored to 2.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $131M in trailing free cash flow, this produces an intrinsic value of $68.79 per share. A 25% safety margin gives a fair value of $51.59, suggesting the stock is currently 36% overvalued against the $80.69 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
$131M
Cash & equivalents
$147M
Total debt
$566M
Shares outstanding
29M