/
DCF Valuation
Base-case fair value
$40.79
Intrinsic $54.39 · 25% MOS
Current price: $45.05
Base-case summary
Our base-case DCF for Iridium Communications Inc. (IRDM) projects 10 years of free cash flow growth at 3.2% for years 1–5 and 1.6% for years 6–10, anchored to 3.2% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $305M in trailing free cash flow, this produces an intrinsic value of $54.39 per share. A 25% safety margin gives a fair value of $40.79, suggesting the stock is currently 9% overvalued against the $45.05 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
$305M
Cash & equivalents
$112M
Total debt
$0
Shares outstanding
107M