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DCF Valuation
Base-case fair value
$245.91
Intrinsic $327.88 · 25% MOS
Current price: $91.72
Base-case summary
Our base-case DCF for Skywest Inc (SKYW) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to 1.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $876M in trailing free cash flow, this produces an intrinsic value of $327.88 per share. A 25% safety margin gives a fair value of $245.91, suggesting the stock is currently 168% undervalued against the $91.72 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
$876M
Cash & equivalents
$627M
Total debt
$2.5B
Shares outstanding
41M