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DCF Valuation
Base-case fair value
$405.16
Intrinsic $540.21 · 25% MOS
Current price: $204.40
Base-case summary
Our base-case DCF for Regal Rexnord Corp (RRX) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 21.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $805M in trailing free cash flow, this produces an intrinsic value of $540.21 per share. A 25% safety margin gives a fair value of $405.16, suggesting the stock is currently 98% undervalued against the $204.40 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
$805M
Cash & equivalents
$401M
Total debt
$5.0B
Shares outstanding
67M