/
DCF Valuation
Base-case fair value
$118.99
Intrinsic $158.65 · 25% MOS
Current price: $87.77
Base-case summary
Our base-case DCF for Gorman Rupp Co (GRC) projects 10 years of free cash flow growth at 19.9% for years 1–5 and 10.0% for years 6–10, anchored to 19.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $89M in trailing free cash flow, this produces an intrinsic value of $158.65 per share. A 25% safety margin gives a fair value of $118.99, suggesting the stock is currently 36% undervalued against the $87.77 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
$89M
Cash & equivalents
$30M
Total debt
$293M
Shares outstanding
26M