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DCF Valuation
Base-case fair value
$106.39
Intrinsic $141.86 · 25% MOS
Current price: $33.92
Base-case summary
Our base-case DCF for Kbr, Inc. (KBR) projects 10 years of free cash flow growth at 15.8% for years 1–5 and 7.9% for years 6–10, anchored to 15.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $517M in trailing free cash flow, this produces an intrinsic value of $141.86 per share. A 25% safety margin gives a fair value of $106.39, suggesting the stock is currently 214% undervalued against the $33.92 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
$517M
Cash & equivalents
$380M
Total debt
$2.8B
Shares outstanding
127M