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DCF Valuation
Base-case fair value
$26.67
Intrinsic $35.56 · 25% MOS
Current price: $47.51
Base-case summary
Our base-case DCF for Rollins Inc (ROL) projects 10 years of free cash flow growth at 10.6% for years 1–5 and 5.3% for years 6–10, anchored to 10.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $621M in trailing free cash flow, this produces an intrinsic value of $35.56 per share. A 25% safety margin gives a fair value of $26.67, suggesting the stock is currently 44% overvalued against the $47.51 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
$621M
Cash & equivalents
$117M
Total debt
$1.1B
Shares outstanding
481M