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DCF Valuation
Base-case fair value
$3.38
Intrinsic $4.50 · 25% MOS
Current price: $3.56
Base-case summary
Our base-case DCF for Honest Company, Inc. (HNST) projects 10 years of free cash flow growth at 5.2% for years 1–5 and 2.6% for years 6–10, anchored to 5.2% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $20M in trailing free cash flow, this produces an intrinsic value of $4.50 per share. A 25% safety margin gives a fair value of $3.38, suggesting the stock is currently 5% overvalued against the $3.56 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
$20M
Cash & equivalents
$90M
Total debt
$12M
Shares outstanding
113M