Crown Holdings, Inc. (CCK) Intrinsic Value

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

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Crown Holdings, Inc. (CCK)

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Intrinsic Value (DCF)

Current$104.78
Intrinsic$74.69
-29%
$36.82$74.69$146.70
Market implies 13% growth for 5 years
CCK trades at a premium to our conservative estimate — investors expect above-average performance.
At $105, the market prices in 13% annual cash flow growth — a moderate expectation aligned with historical trends (8%).
Range: Bear $37 → Bull $147. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →4%6%8%10%
8%$97$110$124$139
10%$56$65$75$85
12%$34$40$47$55
14%$19$24$30$36

Bull Case

  • Bull case ($147) offers 40% upside at 10% growth, 9% discount
  • Conservative 8% growth assumption is achievable based on track record

Bear Case

  • Bear case ($37) implies 65% downside at 6% growth, 12% discount
  • Price reflects 13% growth expectations vs 8% historical — high bar to clear
  • Trading 29% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection

Year 1$852.12M
Year 2$920.29M
Year 3$993.91M
Year 4$1.07B
Year 5$1.16B
Terminal$17.06B

📐 Model Inputs

Growth Rate8.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$789.00MTTM 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 CCK stock undervalued or overvalued?
🔴 OVERVALUED

CCK trades at $104.78 vs. our DCF-derived intrinsic value of $74.69, implying -28% downside. Using a 10.0% WACC and 8.0% FCF growth assumption, the current price requires growth rates above our estimates to be justified. Even our bull case ($118.90) suggests limited upside.

What is CCK's intrinsic value?

Using a 5-year DCF model: Base FCF of $789M, projected at 8.0% 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 $5.41B net debt and dividing by 0.12B shares: Bear $41.63 | Base $74.69 | Bull $118.90. Current price $104.78 implies -28% to base case.

How is CCK's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 8.0% 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 ($14.33B).

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: 18.2x.