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DCF Valuation
Base-case fair value
$104.80
Intrinsic $139.73 · 25% MOS
Current price: $78.93
Base-case summary
Our base-case DCF for Flowserve Corp (FLS) projects 10 years of free cash flow growth at 17.5% for years 1–5 and 8.8% for years 6–10, anchored to 17.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $437M in trailing free cash flow, this produces an intrinsic value of $139.73 per share. A 25% safety margin gives a fair value of $104.80, suggesting the stock is currently 33% undervalued against the $78.93 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
$437M
Cash & equivalents
$792M
Total debt
$1.9B
Shares outstanding
129M