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DCF Valuation
Base-case fair value
$21.21
Intrinsic $28.28 · 25% MOS
Current price: $15.88
Base-case summary
Our base-case DCF for Simulations Plus, Inc. (SLP) projects 10 years of free cash flow growth at 6.2% for years 1–5 and 3.1% for years 6–10, anchored to 6.2% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $24M in trailing free cash flow, this produces an intrinsic value of $28.28 per share. A 25% safety margin gives a fair value of $21.21, suggesting the stock is currently 34% undervalued against the $15.88 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
$24M
Cash & equivalents
$42M
Total debt
$508000
Shares outstanding
20M