TGM's two-stage DCF values The Eastern Company (EML) between $15.94 and $30.26 depending on assumptions, with a base case of $20.91. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (floored at 2%)), fading to 2.5% long-run; the discount rate (8.4%) reflects its beta.
What would today's price require?
$24.78 is justified only if free cash flow grows about +5.4% a year (fading to 2.5% long-run) at a 8.4% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.4% | $15.94 |
| Base case | 2.0%/yr | 8.4% | $20.91 |
| Optimistic | 5.0%/yr | 7.4% | $30.26 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 6, 2026 · assumptions not provided | $14.42 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$24.78
Market-Implied Growth
+5.4%/yr
vs +0.2% 5Y actual
Model Scenario Range
$15.94 – $30.26
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for EML (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 $9.0M · 0.01B shares · net debt $26.5M
Estimated Fair Value
$20.91
-15.6% vs $24.78
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 $24.78; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.4% | $27.10 | $30.09 | $33.84 | $38.70 | $45.22 |
| 7.4% | $21.75 | $23.70 | $26.05 | $28.94 | $32.56 |
| 8.4% | $17.95 | $19.31 | $20.91 | $22.79 | $25.06 |
| 9.4% | $15.11 | $16.11 | $17.25 | $18.57 | $20.10 |
| 10.4% | $12.91 | $13.67 | $14.52 | $15.48 | $16.58 |
