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DCF Valuation
Base-case fair value
$3.38
Intrinsic $4.51 · 25% MOS
Current price: $42.09
Base-case summary
Our base-case DCF for XOMA Royalty Corp (XOMA) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $7M in trailing free cash flow, this produces an intrinsic value of $4.51 per share. A 25% safety margin gives a fair value of $3.38, suggesting the stock is currently 92% overvalued against the $42.09 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
$7M
Cash & equivalents
$86M
Total debt
$125M
Shares outstanding
17M