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DCF Valuation
Base-case fair value
$39.50
Intrinsic $52.66 · 25% MOS
Current price: $43.67
Base-case summary
Our base-case DCF for Omega Healthcare Investors Inc (OHI) projects 10 years of free cash flow growth at 4.5% for years 1–5 and 2.3% for years 6–10, anchored to 4.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $843M in trailing free cash flow, this produces an intrinsic value of $52.66 per share. A 25% safety margin gives a fair value of $39.50, suggesting the stock is currently 10% overvalued against the $43.67 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
$843M
Cash & equivalents
$26M
Total debt
$425M
Shares outstanding
315M