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DCF Valuation
Base-case fair value
$59.85
Intrinsic $79.80 · 25% MOS
Current price: $8.62
Base-case summary
Our base-case DCF for PagerDuty, Inc. (PD) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 78.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $125M in trailing free cash flow, this produces an intrinsic value of $79.80 per share. A 25% safety margin gives a fair value of $59.85, suggesting the stock is currently 594% undervalued against the $8.62 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
$125M
Cash & equivalents
$444M
Total debt
$413M
Shares outstanding
79M