GoDaddy Inc. (GDDY) DCF Valuation
TGM's two-stage DCF values GoDaddy Inc. (GDDY) between $114.12 and $221.74 depending on assumptions, with a base case of $157.30. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.6%) reflects its beta.
What would today's price require?
$76.10 is justified only if free cash flow grows about -6.4% a year (fading to 2.5% long-run) at a 8.6% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.0%/yr | 9.6% | $114.12 |
| Base case | 8.0%/yr | 8.6% | $157.30 |
| Optimistic | 11.0%/yr | 7.6% | $221.74 |
| Analyst DCF (FMP) | independent reference — different model | $204.15 | |
Current Price
$76.10
Market-Implied Growth
-6.4%/yr
vs +19.4% 5Y actual
Model Scenario Range
$114.12 – $221.74
model output — not a price target
GDDY 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 GDDY (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 $1.1B · 0.13B shares · net debt $2.7B
Estimated Fair Value
$195.20
+156.5% vs $76.10
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 $76.10; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.6% | $261 | $283 | $310 | $345 | $391 |
| 7.6% | $211 | $225 | $241 | $261 | $286 |
| 8.6% | $175 | $184 | $195 | $208 | $223 |
| 9.6% | $148 | $155 | $162 | $171 | $181 |
| 10.6% | $128 | $132 | $138 | $144 | $150 |
About GoDaddy Inc.
GoDaddy Inc., founded in 2014 and based in Tempe, Arizona, operates internationally as a developer and provider of cloud-based technological solutions. The company serves a wide array of clients, including small businesses, individuals, organizations, developers, designers, and domain investors, assisting them in building and maintaining their online presence. Key offerings include domain name registration, which serves as the foundational step for a digital identity. GoDaddy provides various web hosting options: shared hosting that includes applications like web analytics and SSL certificates; customizable virtual private and dedicated servers; and managed hosting services that handle setup, monitoring, maintenance, and security. To safeguard online operations, a range of security tools is also available. Its presence solutions extend to user-friendly website builders, such as "Websites + Marketing," enabling the creation of mobile-optimized sites and e-commerce stores. Additionally, the company supplies marketing services, including search engine optimization, social media management, and tools for customer engagement and content generation. GoDaddy's portfolio also encompasses business applications like Microsoft Office 365, professional email accounts, and internet telephony. For online commerce, it offers integrated store capabilities, its own payment processing system called "GoDaddy Payments," and point-of-sale hardware and software solutions.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Amanpal Singh Bhutani