Integer Holdings Corporation (ITGR) Intrinsic Value

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

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Integer Holdings Corporation (ITGR)

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Intrinsic Value (DCF)

Current$82.74
Intrinsic$21.08
-75%
$5.06$21.08$51.53
Market implies 28% growth for 5 years
Current price reflects execution expectations above 8% growth — not unreasonable for quality businesses.
At $83, the market prices in continued strong cash flow growth (28%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $5 → Bull $52. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →4%6%8%10%
8%$30$36$42$48
10%$13$17$21$25
12%$4$7$10$13
14%$0$0$2$5

Bull Case

  • Bull case ($52) with 10% growth, 9% discount rate
  • Conservative 8% growth assumption is achievable based on track record

Bear Case

  • Bear case ($5) implies 94% downside at 6% growth, 12% discount
  • Price reflects 28% growth expectations vs 8% historical — high bar to clear
  • Trading 75% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection

Year 1$107.57M
Year 2$116.17M
Year 3$125.46M
Year 4$135.50M
Year 5$146.34M
Terminal$2.15B

📐 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$99.60MTTM 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 ITGR stock undervalued or overvalued?
🔴 OVERVALUED

ITGR trades at $82.74 vs. our DCF-derived intrinsic value of $21.08, implying -74% 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 ($39.78) suggests limited upside.

What is ITGR's intrinsic value?

Using a 5-year DCF model: Base FCF of $100M, 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 $1.06B net debt and dividing by 0.04B shares: Bear $7.10 | Base $21.08 | Bull $39.78. Current price $82.74 implies -74% to base case.

How is ITGR'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 ($1.81B).

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.