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DCF Valuation
Base-case fair value
$55.82
Intrinsic $74.43 · 25% MOS
Base-case summary
Our base-case DCF for Darling Ingredients Inc. (DAR) projects 10 years of free cash flow growth at 12.1% for years 1–5 and 6.1% for years 6–10, anchored to 12.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from the 3-year average of positive free cash flow ($510M) — TTM FCF was negative, this produces an intrinsic value of $74.43 per share. A 25% safety margin gives a fair value of $55.82.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
TTM FCF is negative ($0). Projecting from a negative base produces nonsensical results, so this model uses the 3-year average of positive FCF ($510M) as the base instead. Treat this valuation as a rough estimate — it assumes a return to historical profitability.
Model inputs
Free Cash Flow (3yr avg)
$510M
Cash & equivalents
$116M
Total debt
$4.3B
Shares outstanding
161M