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DCF Valuation
Base-case fair value
$16.47
Intrinsic $21.96 · 25% MOS
Current price: $15.88
Base-case summary
Our base-case DCF for First Advantage Corp (FA) projects 10 years of free cash flow growth at 8.9% for years 1–5 and 4.5% for years 6–10, anchored to 8.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $216M in trailing free cash flow, this produces an intrinsic value of $21.96 per share. A 25% safety margin gives a fair value of $16.47, suggesting the stock is currently 4% undervalued against the $15.88 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
$216M
Cash & equivalents
$226M
Total debt
$2.1B
Shares outstanding
175M