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DCF Valuation
Base-case fair value
$91.77
Intrinsic $122.35 · 25% MOS
Current price: $71.79
Base-case summary
Our base-case DCF for Champion Homes, Inc. (SKY) projects 10 years of free cash flow growth at 7.0% for years 1–5 and 3.5% for years 6–10, anchored to 7.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $270M in trailing free cash flow, this produces an intrinsic value of $122.35 per share. A 25% safety margin gives a fair value of $91.77, suggesting the stock is currently 28% undervalued against the $71.79 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
$270M
Cash & equivalents
$638M
Total debt
$51M
Shares outstanding
57M