...

Prestige Consumer Healthcare Inc. (PBH) Intrinsic Value

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

Popular:

Prestige Consumer Healthcare Inc. (PBH)

View Full Profile →

Intrinsic Value (DCF)

Current$65.61
→
Intrinsic$73.27
+12%
$44.14$73.27$128.65
Market implies 7% growth for 5 years
PBH appears fairly valued — current price aligns with our DCF estimate.
At $66, the market prices in only 7% growth — below historical 9%, suggesting low expectations.
Range: Bear $44 → Bull $129. Current price implies expectations below the base case, but well above the bear case.
Discount ↓Growth →5%7%9%11%
8%$91$101$111$123
10%$59$66$73$81
12%$42$47$52$58
14%$30$35$39$44

Bull Case

  • Bull case ($129) offers 96% upside at 11% growth, 9% discount
  • 10% margin of safety vs. base case estimate
  • Market-implied growth (7%) ≤ historical CAGR (9%)

Bear Case

  • Bear case ($44) implies 33% downside at 7% growth, 12% discount
Loading charts...

5-Year Free Cash Flow Projection

Year 1$265.34M
Year 2$289.40M
Year 3$315.63M
Year 4$344.24M
Year 5$375.44M
Terminal$5.52B

📐 Model Inputs

Growth Rate9.1%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$243.29MTTM 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.

Related Analysis

Full Stock ProfileCompare PBH vs AAPLStock Screener

Frequently Asked Questions

Is PBH stock undervalued or overvalued?
🟢 UNDERVALUED

PBH trades at $65.61 vs. our DCF-derived intrinsic value of $73.27, implying +17% upside. At a 10.0% WACC and 9.1% projected FCF growth, the market appears to be underpricing the present value of PBH's future cash flows. The bear case ($47.24) still suggests upside, providing margin of safety.

What is PBH's intrinsic value?

Using a 5-year DCF model: Base FCF of $243M, projected at 9.1% 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 $946M net debt and dividing by 0.05B shares: Bear $47.24 | Base $73.27 | Bull $108.43. Current price $65.61 implies +17% to base case.

How is PBH's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 9.1% 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 ($4.62B).

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: 19.0x.