/
DCF Valuation
Base-case fair value
$6.16
Intrinsic $8.21 · 25% MOS
Current price: $13.50
Base-case summary
Our base-case DCF for DNOW Inc. (DNOW) projects 10 years of free cash flow growth at 16.2% for years 1–5 and 8.1% for years 6–10, anchored to 16.2% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $53M in trailing free cash flow, this produces an intrinsic value of $8.21 per share. A 25% safety margin gives a fair value of $6.16, suggesting the stock is currently 54% overvalued against the $13.50 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
$53M
Cash & equivalents
$116M
Total debt
$737M
Shares outstanding
186M