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DCF Valuation
Base-case fair value
$82.81
Intrinsic $110.41 · 25% MOS
Current price: $25.83
Base-case summary
Our base-case DCF for Dorchester Minerals, L.P. (DMLP) projects 10 years of free cash flow growth at 11.8% for years 1–5 and 5.9% for years 6–10, anchored to 11.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $123M in trailing free cash flow, this produces an intrinsic value of $110.41 per share. A 25% safety margin gives a fair value of $82.81, suggesting the stock is currently 221% undervalued against the $25.83 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
$123M
Cash & equivalents
$28M
Total debt
$713000
Shares outstanding
35M