DCF Valuation
Base-case fair value
$13.08
Intrinsic $17.44 · 25% MOS
Current price: $11.06
Base-case summary
Our base-case DCF for Legacy Education Inc. (LGCY) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 44.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $5M in trailing free cash flow, this produces an intrinsic value of $17.44 per share. A 25% safety margin gives a fair value of $13.08, suggesting the stock is currently 18% undervalued against the $11.06 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
$5M
Cash & equivalents
$22M
Total debt
$16M
Shares outstanding
14M