DCF Valuation
Base-case fair value
$694.48
Intrinsic $925.97 · 25% MOS
Current price: $606.27
Base-case summary
Our base-case DCF for Dillard'S, Inc. (DDS) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $755M in trailing free cash flow, this produces an intrinsic value of $925.97 per share. A 25% safety margin gives a fair value of $694.48, suggesting the stock is currently 15% undervalued against the $606.27 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
$755M
Cash & equivalents
$1.4B
Total debt
$34M
Shares outstanding
16M