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DCF Valuation
Base-case fair value
$82.02
Intrinsic $109.36 · 25% MOS
Current price: $28.12
Base-case summary
Our base-case DCF for Tetra Tech Inc (TTEK) projects 10 years of free cash flow growth at 17.7% for years 1–5 and 8.9% for years 6–10, anchored to 17.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $668M in trailing free cash flow, this produces an intrinsic value of $109.36 per share. A 25% safety margin gives a fair value of $82.02, suggesting the stock is currently 192% undervalued against the $28.12 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
$668M
Cash & equivalents
$224M
Total debt
$1.1B
Shares outstanding
262M