/
DCF Valuation
Base-case fair value
$41.78
Intrinsic $55.71 · 25% MOS
Current price: $26.00
Base-case summary
Our base-case DCF for Healthstream Inc (HSTM) projects 10 years of free cash flow growth at 9.0% for years 1–5 and 4.5% for years 6–10, anchored to 9.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $60M in trailing free cash flow, this produces an intrinsic value of $55.71 per share. A 25% safety margin gives a fair value of $41.78, suggesting the stock is currently 61% undervalued against the $26.00 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
$60M
Cash & equivalents
$66M
Total debt
$14M
Shares outstanding
29M