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DCF Valuation
Base-case fair value
$370.63
Intrinsic $494.18 · 25% MOS
Current price: $108.67
Base-case summary
Our base-case DCF for Leidos Holdings, Inc. (LDOS) projects 10 years of free cash flow growth at 14.9% for years 1–5 and 7.5% for years 6–10, anchored to 14.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $1.9B in trailing free cash flow, this produces an intrinsic value of $494.18 per share. A 25% safety margin gives a fair value of $370.63, suggesting the stock is currently 241% undervalued against the $108.67 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
$1.9B
Cash & equivalents
$457M
Total debt
$6.9B
Shares outstanding
128M