The Cooper Companies, Inc. (COO) Intrinsic Value

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

Popular:

The Cooper Companies, Inc. (COO)

View Full Profile →

Intrinsic Value (DCF)

Current$82.31
Intrinsic$49.49
-40%
$29.47$49.49$87.50
Market implies 31% growth for 5 years
Current price reflects execution expectations above 20% growth — not unreasonable for quality businesses.
At $82, the market prices in continued strong cash flow growth (31%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $29 → Bull $88. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →16%18%20%22%
8%$63$70$76$84
10%$40$45$49$54
12%$28$31$35$38
14%$20$22$25$28

Bull Case

  • Bull case ($88) offers 6% upside at 24% growth, 9% discount

Bear Case

  • Bear case ($29) implies 64% downside at 16% growth, 12% discount
  • Price reflects 31% growth expectations vs 20% historical — high bar to clear
  • Trading 40% above base case — execution must exceed assumptions to justify
Loading charts...

5-Year Free Cash Flow Projection

Year 1$519.31M
Year 2$621.82M
Year 3$744.56M
Year 4$891.53M
Year 5$1.07B
Terminal$15.71B

📐 Model Inputs

Growth Rate19.7%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$433.70MTTM 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 COO stock undervalued or overvalued?
🔴 OVERVALUED

COO trades at $82.31 vs. our DCF-derived intrinsic value of $49.49, implying -41% downside. Using a 10.0% WACC and 19.7% FCF growth assumption, the current price requires growth rates above our estimates to be justified. Even our bull case ($81.16) suggests limited upside.

What is COO's intrinsic value?

Using a 5-year DCF model: Base FCF of $434M, projected at 19.7% 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 $2.67B net debt and dividing by 0.20B shares: Bear $27.94 | Base $49.49 | Bull $81.16. Current price $82.31 implies -41% to base case.

How is COO's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 19.7% 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 ($12.57B).

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: 29.0x.