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DCF Valuation
Base-case fair value
$61.15
Intrinsic $81.53 · 25% MOS
Current price: $64.18
Base-case summary
Our base-case DCF for Terex Corp (TEX) projects 10 years of free cash flow growth at 6.6% for years 1–5 and 3.3% for years 6–10, anchored to 6.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $322M in trailing free cash flow, this produces an intrinsic value of $81.53 per share. A 25% safety margin gives a fair value of $61.15, suggesting the stock is currently 5% overvalued against the $64.18 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
$322M
Cash & equivalents
$772M
Total debt
$2.7B
Shares outstanding
66M