TGM's two-stage DCF values Graco Inc. (GGG) between $49.64 and $85.95 depending on assumptions, with a base case of $64.25. 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 (8.7%) reflects its beta.
What would today's price require?
$81.01 is justified only if free cash flow grows about +13.1% a year (fading to 2.5% long-run) at a 8.7% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.1%/yr | 9.7% | $49.64 |
| Base case | 7.1%/yr | 8.7% | $64.25 |
| Optimistic | 10.1%/yr | 7.7% | $85.95 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 18, 2026 · assumptions not provided | $80.08 | |
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
$81.01
Market-Implied Growth
+13.1%/yr
vs +10.3% 5Y actual
Model Scenario Range
$49.64 – $85.95
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 GGG (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 $490.6M · 0.16B shares · net cash $581.3M
Estimated Fair Value
$64.25
-20.7% vs $81.01
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $81.01; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.7% | $78.76 | $85.53 | $93.91 | $105 | $118 |
| 7.7% | $66.31 | $70.83 | $76.22 | $82.75 | $90.82 |
| 8.7% | $57.34 | $60.54 | $64.25 | $68.61 | $73.80 |
| 9.7% | $50.56 | $52.93 | $55.62 | $58.71 | $62.29 |
| 10.7% | $45.27 | $47.08 | $49.10 | $51.38 | $53.98 |