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DCF Valuation
Base-case fair value
$139.58
Intrinsic $186.11 · 25% MOS
Current price: $31.74
Base-case summary
Our base-case DCF for Teradata Corp (TDC) projects 10 years of free cash flow growth at 9.0% for years 1–5 and 4.5% for years 6–10, anchored to 9.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $670M in trailing free cash flow, this produces an intrinsic value of $186.11 per share. A 25% safety margin gives a fair value of $139.58, suggesting the stock is currently 340% undervalued against the $31.74 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
$670M
Cash & equivalents
$816M
Total debt
$553M
Shares outstanding
97M