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DCF Valuation
Base-case fair value
$71.12
Intrinsic $94.83 · 25% MOS
Current price: $45.06
Base-case summary
Our base-case DCF for Lamb Weston Holdings, Inc. (LW) projects 10 years of free cash flow growth at 9.4% for years 1–5 and 4.7% for years 6–10, anchored to 9.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $634M in trailing free cash flow, this produces an intrinsic value of $94.83 per share. A 25% safety margin gives a fair value of $71.12, suggesting the stock is currently 58% undervalued against the $45.06 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
$634M
Cash & equivalents
$58M
Total debt
$4.0B
Shares outstanding
139M