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DCF Valuation
Base-case fair value
$351.96
Intrinsic $469.28 · 25% MOS
Current price: $212.35
Base-case summary
Our base-case DCF for STERIS plc (STE) projects 10 years of free cash flow growth at 19.6% for years 1–5 and 9.8% for years 6–10, anchored to 19.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $972M in trailing free cash flow, this produces an intrinsic value of $469.28 per share. A 25% safety margin gives a fair value of $351.96, suggesting the stock is currently 66% undervalued against the $212.35 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
$972M
Cash & equivalents
$440M
Total debt
$2.1B
Shares outstanding
99M