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DCF Valuation
Base-case fair value
$25.31
Intrinsic $33.75 · 25% MOS
Current price: $28.09
Base-case summary
Our base-case DCF for Gates Industrial Corp plc (GTES) projects 10 years of free cash flow growth at 7.1% for years 1–5 and 3.6% for years 6–10, anchored to 7.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $429M in trailing free cash flow, this produces an intrinsic value of $33.75 per share. A 25% safety margin gives a fair value of $25.31, suggesting the stock is currently 10% overvalued against the $28.09 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
$429M
Cash & equivalents
$785M
Total debt
$2.2B
Shares outstanding
257M