DCF Valuation
Base-case fair value
$126.75
Intrinsic $169.00 · 25% MOS
Current price: $84.61
Base-case summary
Our base-case DCF for US Foods Holding Corp. (USFD) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 42.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $848M in trailing free cash flow, this produces an intrinsic value of $169.00 per share. A 25% safety margin gives a fair value of $126.75, suggesting the stock is currently 50% undervalued against the $84.61 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
$848M
Cash & equivalents
$49M
Total debt
$5.2B
Shares outstanding
223M