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DCF Valuation
Base-case fair value
$58.75
Intrinsic $78.33 · 25% MOS
Current price: $12.56
Base-case summary
Our base-case DCF for TripAdvisor, Inc. (TRIP) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 27.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $182M in trailing free cash flow, this produces an intrinsic value of $78.33 per share. A 25% safety margin gives a fair value of $58.75, suggesting the stock is currently 368% undervalued against the $12.56 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
$182M
Cash & equivalents
$1.1B
Total debt
$1.2B
Shares outstanding
115M