Mar. 18 at 7:50 AM
Q: What's the fair value of
$INTU according to different models?
A: The log features a few DCF variants using risk-adjusted CAPM discount rates. Here's each one with upside/downside from
$459.28 and key insights:
Base Case: Fair value
$493.31 (+7.4% upside). Uses computed beta of 1.08 for a 10.5% discount rate (Rf 4% + 1.08*6% ERP). Strong FCF growth projected (31.3% latest YoY), implies fairly valued, slight buy.
Bear Case (Conservative scenario):
$311.65 (-32.1% downside). Pessimistic assumptions on growth, highlights risks if FCF disappoints.
5-Year DCF:
$409.29 (-10.9% downside). Detailed 5-year FCF projections (
$7.38B to
$11.52B), PV sum
$35.36B + terminal
$84.22B PV, minus net debt
$3.75B, divided by 0.28B shares. Uses same CAPM rate.
