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DCF Valuation
Base-case fair value
$38.11
Intrinsic $50.81 · 25% MOS
Current price: $35.50
Base-case summary
Our base-case DCF for Oceaneering International Inc (OII) projects 10 years of free cash flow growth at 6.3% for years 1–5 and 3.2% for years 6–10, anchored to 6.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $238M in trailing free cash flow, this produces an intrinsic value of $50.81 per share. A 25% safety margin gives a fair value of $38.11, suggesting the stock is currently 7% undervalued against the $35.50 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
$238M
Cash & equivalents
$607M
Total debt
$849M
Shares outstanding
101M