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DCF Valuation
Base-case fair value
$9.85
Intrinsic $13.13 · 25% MOS
Current price: $19.95
Base-case summary
Our base-case DCF for Hamilton Beach Brands Holding Co (HBB) projects 10 years of free cash flow growth at 5.7% for years 1–5 and 2.9% for years 6–10, anchored to 5.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $8M in trailing free cash flow, this produces an intrinsic value of $13.13 per share. A 25% safety margin gives a fair value of $9.85, suggesting the stock is currently 51% overvalued against the $19.95 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
$8M
Cash & equivalents
$47M
Total debt
$41M
Shares outstanding
14M