Crane Company (CR) DCF Valuation
Why we don't show a single “fair value” for CR
Even the optimistic scenario of a conservative trailing-FCF model ($77.45) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. The honest lens is the question below: what growth does today's price actually require? The model scenarios are listed further down for reference.
What would today's price require?
$223.59 is justified only if free cash flow grows about +39.0% a year (fading to 2.5% long-run) at a 9.7% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 10.7% | $52.30 |
| Base case | 2.0%/yr | 9.7% | $61.20 |
| Optimistic | 5.0%/yr | 8.7% | $77.45 |
| Analyst DCF (FMP) | independent reference — different model | $102.30 | |
Current Price
$223.59
Market-Implied Growth
+39.0%/yr
vs -6.5% 5Y actual
Base-Case Model Value
$61.20
model output — not a price target
CR 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 CR (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 $212.7M · 0.06B shares · net cash $568.0M
Estimated Fair Value
$60.39
-73.0% vs $223.59
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $223.59; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.7% | $72.49 | $75.75 | $79.63 | $84.35 | $90.18 |
| 8.7% | $63.72 | $65.91 | $68.46 | $71.46 | $75.04 |
| 9.7% | $57.08 | $58.63 | $60.39 | $62.41 | $64.76 |
| 10.7% | $51.90 | $53.02 | $54.28 | $55.71 | $57.33 |
| 11.7% | $47.73 | $48.57 | $49.50 | $50.53 | $51.70 |
About Crane Company
Established in 1855 in Stamford, Connecticut, Crane Company, formerly known as Crane Holdings, Co., is a global industrial manufacturer and distributor of specialized engineered products. Operating across the Americas, Europe, the Middle East, Asia, and Australia, the company is structured into four main business divisions. The Aerospace & Electronics segment provides critical components and integrated systems, including both original equipment and aftermarket parts, primarily to commercial and military aerospace, defense, and space exploration markets. This encompasses products like pressure sensors for aircraft engine control, braking systems for fighter jets, power conversion solutions for spacecraft, and lubrication systems. Through its Process Flow Technologies division, Crane supplies engineered equipment for mission-critical fluid handling, offering a range of process and commercial valves, along with various pumps and related systems. The Payment & Merchandising Technologies segment delivers electronic devices and associated software, leveraging proprietary expertise in payment verification and authentication, automation, field service, remote diagnostics, and software designed to boost efficiency. Lastly, the Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, predominantly used in the production of recreational vehicles and for commercial and industrial construction applications. Crane Company's diverse offerings cater to a wide array of end markets, including aerospace, defense, chemical and pharmaceutical industries, water and wastewater management, payment automation, non-residential and municipal construction, energy, banknote design and production, and numerous general industrial and consumer applications.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Max H. Mitchell