DCF Valuation
Base-case fair value
$35.54
Intrinsic $47.39 · 25% MOS
Current price: $23.33
Base-case summary
Our base-case DCF for Reynolds Consumer Products Inc. (REYN) projects 10 years of free cash flow growth at 14.0% for years 1–5 and 7.0% for years 6–10, anchored to 14.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $326M in trailing free cash flow, this produces an intrinsic value of $47.39 per share. A 25% safety margin gives a fair value of $35.54, suggesting the stock is currently 52% undervalued against the $23.33 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
$326M
Cash & equivalents
$71M
Total debt
$1.6B
Shares outstanding
212M