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DCF Valuation
Base-case fair value
$62.56
Intrinsic $83.41 · 25% MOS
Base-case summary
Our base-case DCF for Innospec Inc. (IOSP) projects 10 years of free cash flow growth at 7.3% for years 1–5 and 3.7% for years 6–10, anchored to 7.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $77M in trailing free cash flow, this produces an intrinsic value of $83.41 per share. A 25% safety margin gives a fair value of $62.56.
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
$77M
Cash & equivalents
$289M
Total debt
$51M
Shares outstanding
25M