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DCF Valuation
Base-case fair value
$42.00
Intrinsic $56.01 · 25% MOS
Current price: $83.65
Base-case summary
Our base-case DCF for DONALDSON Co INC (DCI) projects 10 years of free cash flow growth at 2.6% for years 1–5 and 1.3% for years 6–10, anchored to 2.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $391M in trailing free cash flow, this produces an intrinsic value of $56.01 per share. A 25% safety margin gives a fair value of $42.00, suggesting the stock is currently 50% overvalued against the $83.65 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
$391M
Cash & equivalents
$204M
Total debt
$608M
Shares outstanding
118M