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DCF Valuation
Base-case fair value
$7.03
Intrinsic $9.38 · 25% MOS
Base-case summary
Our base-case DCF for Luckin Coffee Inc. (LKNCY) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 186.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $495M in trailing free cash flow, this produces an intrinsic value of $9.38 per share. A 25% safety margin gives a fair value of $7.03.
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
$495M
Cash & equivalents
$696M
Total debt
$1.6B
Shares outstanding
2.6B