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DCF Valuation
Base-case fair value
$75.12
Intrinsic $100.16 · 25% MOS
Current price: $141.17
Base-case summary
Our base-case DCF for Rambus Inc (RMBS) projects 10 years of free cash flow growth at 11.4% for years 1–5 and 5.7% for years 6–10, anchored to 11.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $335M in trailing free cash flow, this produces an intrinsic value of $100.16 per share. A 25% safety margin gives a fair value of $75.12, suggesting the stock is currently 47% overvalued against the $141.17 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
$335M
Cash & equivalents
$786M
Total debt
$23M
Shares outstanding
110M