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DCF Valuation
Base-case fair value
$84.28
Intrinsic $112.37 · 25% MOS
Current price: $20.32
Base-case summary
Our base-case DCF for Rmr Group Inc. (RMR) projects 10 years of free cash flow growth at 5.4% for years 1–5 and 2.7% for years 6–10, anchored to 5.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $92M in trailing free cash flow, this produces an intrinsic value of $112.37 per share. A 25% safety margin gives a fair value of $84.28, suggesting the stock is currently 315% undervalued against the $20.32 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
$92M
Cash & equivalents
$80M
Total debt
$158M
Shares outstanding
17M