Instacart (Maplebear Inc.) (CART) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Instacart (Maplebear Inc.) (CART)

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Intrinsic Value (DCF)

Current$41.91
Intrinsic$74.42
+78%
$52.23$74.42$116.52
Market implies 6% growth for 5 years
DCF analysis suggests CART could have 78% upside at 23% growth — verify assumptions match your view.
At $42, the market prices in only 6% growth — below historical 23%, suggesting low expectations.
Range: Bear $52 → Bull $117. Current price implies expectations below the bear case — very conservative expectations.
Discount ↓Growth →19%21%23%25%
8%$90$97$104$112
10%$65$69$74$80
12%$50$54$58$62
14%$42$44$47$50

Bull Case

  • Bull case ($117) offers 178% upside at 27% growth, 9% discount
  • Price below even worst-case scenario — strong margin of safety
  • Market-implied growth (6%) ≤ historical CAGR (23%)

Bear Case

  • Bear case ($52) with 18% growth, 12% discount rate
  • Using 23% growth — aggressive, watch for mean reversion
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5-Year Free Cash Flow Projection

Year 1$763.67M
Year 2$936.11M
Year 3$1.15B
Year 4$1.41B
Year 5$1.72B
Terminal$25.37B

📐 Model Inputs

Growth Rate22.6%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$623.00MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is CART stock undervalued or overvalued?
🟢 UNDERVALUED

CART trades at $41.91 vs. our DCF-derived intrinsic value of $67.93, implying +53% upside. At a 10.0% WACC and 22.6% projected FCF growth, the market appears to be underpricing the present value of CART's future cash flows. The bear case ($46.23) still suggests upside, providing margin of safety.

What is CART's intrinsic value?

Using a 5-year DCF model: Base FCF of $623M, projected at 22.6% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $-1.40B net debt and dividing by 0.29B shares: Bear $46.23 | Base $67.93 | Bull $99.89. Current price $41.91 implies +53% to base case.

How is CART's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 22.6% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($18.24B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 29.3x.