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DCF Valuation
Base-case fair value
$109.75
Intrinsic $146.33 · 25% MOS
Current price: $45.58
Base-case summary
Our base-case DCF for Trinet Group, Inc. (TNET) projects 10 years of free cash flow growth at 9.3% for years 1–5 and 4.7% for years 6–10, anchored to 9.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $278M in trailing free cash flow, this produces an intrinsic value of $146.33 per share. A 25% safety margin gives a fair value of $109.75, suggesting the stock is currently 141% undervalued against the $45.58 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
$278M
Cash & equivalents
$340M
Total debt
$946M
Shares outstanding
47M