Fortune Brands Innovations, Inc. (FBIN) Intrinsic Value

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

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Fortune Brands Innovations, Inc. (FBIN)

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Intrinsic Value (DCF)

Current$60.19
Intrinsic$49.09
-18%
$27.45$49.09$90.23
Market implies 12% growth for 5 years
FBIN trades at a premium to our conservative estimate — investors expect above-average performance.
At $60, the market prices in 12% annual cash flow growth — a moderate expectation aligned with historical trends (8%).
Range: Bear $27 → Bull $90. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →4%6%8%10%
8%$62$69$77$86
10%$39$44$49$55
12%$26$29$34$38
14%$17$20$24$27

Bull Case

  • Bull case ($90) offers 50% upside at 10% growth, 9% discount
  • Conservative 8% growth assumption is achievable based on track record

Bear Case

  • Bear case ($27) implies 54% downside at 6% growth, 12% discount
  • Price reflects 12% growth expectations vs 8% historical — high bar to clear
  • Trading 18% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection

Year 1$512.46M
Year 2$553.46M
Year 3$597.73M
Year 4$645.55M
Year 5$697.20M
Terminal$10.26B

📐 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$474.50MTTM 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 FBIN stock undervalued or overvalued?
🟡 FAIRLY VALUED

FBIN trades at $60.19, within 10% of our $49.09 intrinsic value estimate. At 10.0% WACC and 8.0% FCF growth, the market is pricing in assumptions roughly aligned with the 5-year historical CAGR. The valuation range spans $30.20 (bear) to $74.35 (bull).

What is FBIN's intrinsic value?

Using a 5-year DCF model: Base FCF of $475M, 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 $2.45B net debt and dividing by 0.13B shares: Bear $30.20 | Base $49.09 | Bull $74.35. Current price $60.19 implies -8% to base case.

How is FBIN'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 ($8.62B).

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.