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DCF Valuation
Base-case fair value
$105.19
Intrinsic $140.25 · 25% MOS
Base-case summary
Our base-case DCF for Construction Partners, Inc. (ROAD) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 47.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $191M in trailing free cash flow, this produces an intrinsic value of $140.25 per share. A 25% safety margin gives a fair value of $105.19.
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
$191M
Cash & equivalents
$77M
Total debt
$1.8B
Shares outstanding
56M