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DCF Valuation
Base-case fair value
$42.35
Intrinsic $56.47 · 25% MOS
Current price: $37.23
Base-case summary
Our base-case DCF for Liquidity Services Inc (LQDT) projects 10 years of free cash flow growth at 5.3% for years 1–5 and 2.7% for years 6–10, anchored to 5.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $78M in trailing free cash flow, this produces an intrinsic value of $56.47 per share. A 25% safety margin gives a fair value of $42.35, suggesting the stock is currently 14% undervalued against the $37.23 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
$78M
Cash & equivalents
$204M
Total debt
$15M
Shares outstanding
32M