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DCF Valuation
Base-case fair value
$104.84
Intrinsic $139.79 · 25% MOS
Current price: $83.62
Base-case summary
Our base-case DCF for Sunbelt Rentals Holdings, Inc. (SUNB) projects 10 years of free cash flow growth at 17.5% for years 1–5 and 8.8% for years 6–10, anchored to 17.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $1.6B in trailing free cash flow, this produces an intrinsic value of $139.79 per share. A 25% safety margin gives a fair value of $104.84, suggesting the stock is currently 25% undervalued against the $83.62 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
$1.6B
Cash & equivalents
$29M
Total debt
$10.6B
Shares outstanding
421M