EnerSys (ENS) DCF Valuation
TGM's two-stage DCF values EnerSys (ENS) between $81.15 and $149.09 depending on assumptions, with a base case of $109.36. 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 (10%) reflects its beta.
What would today's price require?
$232.94 is justified only if free cash flow grows about +24.8% a year (fading to 2.5% long-run) at a 10% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.4%/yr | 11.0% | $81.15 |
| Base case | 7.4%/yr | 10.0% | $109.36 |
| Optimistic | 10.4%/yr | 9.0% | $149.09 |
| Analyst DCF (FMP) | independent reference — different model | $218.99 | |
Current Price
$232.94
Market-Implied Growth
+24.8%/yr
vs +10.2% 5Y actual
Model Scenario Range
$81.15 – $149.09
model output — not a price target
ENS 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 ENS (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 $280.9M · 0.04B shares · net debt $696.3M
Estimated Fair Value
$131.28
-43.6% vs $232.94
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $232.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $169 | $179 | $191 | $205 | $223 |
| 9.0% | $142 | $149 | $157 | $166 | $177 |
| 10.0% | $121 | $126 | $131 | $138 | $145 |
| 11.0% | $104 | $108 | $112 | $117 | $122 |
| 12.0% | $91.33 | $94.03 | $97.01 | $100 | $104 |
About EnerSys
EnerSys, established in 2000 and headquartered in Reading, Pennsylvania, operates as a global leader in delivering stored energy solutions for various industrial sectors. The company, which was formerly known as Yuasa, Inc. before rebranding as EnerSys in January 2001, organizes its extensive operations into three core divisions: Energy Systems, Motive Power, and Specialty. The Energy Systems segment focuses on providing critical power infrastructure, including uninterruptible power supplies (UPS) for computer and telecommunication networks. This division also offers switchgear and electrical control systems essential for industrial plants, electric utilities, large-scale energy storage projects, and energy pipelines. Additionally, it delivers integrated power solutions and services to customers in broadband, telecommunications, renewable energy, and other industrial areas, alongside manufacturing thermally managed cabinets and enclosures for sensitive electronics and batteries. In the Motive Power segment, EnerSys specializes in producing power products for electric industrial forklifts, which are indispensable in manufacturing, warehousing, and material handling applications. The Specialty segment addresses highly specific and demanding energy needs. Its offerings include power solutions for mining equipment, diesel locomotive starting, and various other rail applications. This segment also develops specialized batteries for starting, lighting, and ignition in transportation vehicles. Furthermore, it provides advanced energy solutions for critical applications such as satellites, military aircraft, submarines, ships, tactical vehicles, as well as medical and security systems. Beyond its primary product lines, EnerSys supplies a comprehensive range of supplementary items, including battery chargers, power equipment, battery accessories, and durable outdoor cabinet enclosures. The company also backs its industrial battery offerings with extensive after-market and customer-support services. EnerSys effectively reaches its global customer base by distributing its products through a broad network of independent distributors, authorized representatives, and its dedicated internal sales teams.
- Sector
- Industrials
- Industry
- Electrical Equipment & Parts
- CEO
- Shawn O'Connell