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Veralto Corporation (VLTO)
Intrinsic Value (DCF)
Current$103.18
→
Intrinsic$52.98
-49%
$34.14$52.98$88.78
Market implies 24% growth for 5 years
Current price reflects execution expectations above 8% growth — not unreasonable for quality businesses.
At $103, the market prices in continued strong cash flow growth (24%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $34 → Bull $89. Current price implies expectations above the base case, closer to bull expectations.
| Discount ↓Growth → | 4% | 6% | 8% | 10% |
|---|---|---|---|---|
| 8% | $64 | $70 | $77 | $85 |
| 10% | $44 | $48 | $53 | $58 |
| 12% | $33 | $36 | $39 | $43 |
| 14% | $25 | $28 | $31 | $34 |
Bull Case
- Bull case ($89) with 10% growth, 9% discount rate
- Conservative 8% growth assumption is achievable based on track record
Bear Case
- Bear case ($34) implies 67% downside at 6% growth, 12% discount
- Price reflects 24% growth expectations vs 8% historical — high bar to clear
- Trading 49% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection
Year 1$885.60M
Year 2$956.45M
Year 3$1.03B
Year 4$1.12B
Year 5$1.20B
Terminal$17.73B
📐 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$820.00MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.