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DCF Valuation
Base-case fair value
$332.06
Intrinsic $442.74 · 25% MOS
Current price: $191.26
Base-case summary
Our base-case DCF for Five Below, Inc (FIVE) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 66.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $505M in trailing free cash flow, this produces an intrinsic value of $442.74 per share. A 25% safety margin gives a fair value of $332.06, suggesting the stock is currently 74% undervalued against the $191.26 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
$505M
Cash & equivalents
$1.1B
Total debt
$2.0B
Shares outstanding
56M