KBR, Inc. (KBR) DCF Valuation
TGM's two-stage DCF values KBR, Inc. (KBR) between $31.05 and $78.41 depending on assumptions, with a base case of $49.27. 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 (7.5%) reflects its beta.
What would today's price require?
$32.82 is justified only if free cash flow grows about +0.1% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.5%/yr | 8.5% | $31.05 |
| Base case | 6.5%/yr | 7.5% | $49.27 |
| Optimistic | 9.5%/yr | 6.5% | $78.41 |
| Analyst DCF (FMP) | independent reference — different model | $314.50 | |
Current Price
$32.82
Market-Implied Growth
+0.1%/yr
vs +6.8% 5Y actual
Model Scenario Range
$31.05 – $78.41
model output — not a price target
KBR 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 KBR (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 $355.0M · 0.13B shares · net debt $2.4B
Estimated Fair Value
$60.05
+83.0% vs $32.82
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.5%/yr FCF growth and 10-year horizon fixed. Green = above today's $32.82; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $88.74 | $100 | $116 | $137 | $170 |
| 6.5% | $66.00 | $72.63 | $80.91 | $91.56 | $106 |
| 7.5% | $50.91 | $55.06 | $60.05 | $66.14 | $73.75 |
| 8.5% | $40.18 | $42.96 | $46.19 | $50.01 | $54.60 |
| 9.5% | $32.18 | $34.12 | $36.33 | $38.88 | $41.86 |
About KBR, Inc.
KBR, Inc. delivers advanced scientific, technological, and engineering solutions globally to both government entities and commercial enterprises. The company operates through two main divisions: The Government Solutions segment offers all-encompassing support throughout the lifecycle of defense, intelligence, space, aviation, and other missions for governmental and military clients primarily in the United States, the United Kingdom, and Australia. This includes services spanning initial research and development, advanced prototyping, acquisition support, intricate systems engineering, cyber security analysis, space domain awareness, comprehensive testing and evaluation, systems integration, and program management. Additionally, it provides global supply chain management, operational readiness, and sophisticated command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) services. The segment also furnishes expert professional advisory services, delivering high-end systems engineering, system assurance, and advanced technological solutions to clients within the defense, energy, and critical infrastructure domains. The Sustainable Technology Solutions segment encompasses a portfolio of roughly 70 patented process technologies utilized for producing ammonia, syngas, and fertilizers, as well as in chemical/petrochemical manufacturing, clean refining, and circular economy initiatives. It further provides consulting and advisory practices primarily focused on navigating the energy transition and achieving net-zero carbon emissions. Beyond engineering, design, and professional services, this segment offers industrial solutions via KBR INSITE. KBR INSITE is a proprietary, digital, and cloud-based platform designed to identify avenues for clients to improve production, enhance reliability, reduce environmental impact, boost energy efficiency, and increase profitability. Founded in 1998, KBR, Inc. is headquartered in Houston, Texas.
- Sector
- Industrials
- Industry
- Engineering & Construction
- CEO
- Stuart John Baxter Bradie