Booz Allen Hamilton Holding Corporation (BAH) DCF Valuation
TGM's two-stage DCF values Booz Allen Hamilton Holding Corporation (BAH) between $86.41 and $194.44 depending on assumptions, with a base case of $127.98. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$63.88 is justified only if free cash flow grows about -4.3% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.0%/yr | 8.5% | $86.41 |
| Base case | 8.0%/yr | 7.5% | $127.98 |
| Optimistic | 11.0%/yr | 6.5% | $194.44 |
| Analyst DCF (FMP) | independent reference — different model | $442.89 | |
Current Price
$63.88
Market-Implied Growth
-4.3%/yr
vs +8.5% 5Y actual
Model Scenario Range
$86.41 – $194.44
model output — not a price target
BAH DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for BAH (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $718.8M · 0.12B shares · net debt $3.3B
Estimated Fair Value
$163.06
+155.3% vs $63.88
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $63.88; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $233 | $262 | $300 | $353 | $433 |
| 6.5% | $178 | $194 | $214 | $241 | $275 |
| 7.5% | $141 | $151 | $163 | $178 | $197 |
| 8.5% | $114 | $121 | $129 | $138 | $150 |
| 9.5% | $94.71 | $99.47 | $105 | $111 | $119 |
About Booz Allen Hamilton Holding Corporation
Booz Allen Hamilton Holding Corporation (BAH) operates as a prominent consulting and technology firm, offering a diverse range of services to governmental bodies, commercial enterprises, and non-profit organizations both domestically and internationally. Their core offerings encompass strategic management and technology advisory, with a focus on areas like business strategy, human resources, and operational efficiency across various sectors. A significant aspect of their work involves advanced analytics. This includes pioneering solutions in artificial intelligence, specifically machine learning and deep learning; data science, such as data engineering and predictive modeling; automation and sophisticated decision analytics; and cutting-edge quantum computing. Furthermore, Booz Allen Hamilton designs, develops, and implements digital solutions using contemporary methodologies and modern architectural frameworks. They provide comprehensive engineering services for defining, developing, deploying, sustaining, and upgrading complex physical systems. The company also delivers robust cyber risk management solutions, emphasizing prevention, detection, and overall cost-effectiveness. Founded in 1914, Booz Allen Hamilton's corporate headquarters are located in McLean, Virginia.
- Sector
- Industrials
- Industry
- Consulting Services
- CEO
- Horacio D. Rozanski