TGM's two-stage DCF values LivaNova PLC (LIVN) between $29.89 and $51.02 depending on assumptions, with a base case of $38.35. 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 (8.5%) reflects its beta.
What would today's price require?
$75.62 is justified only if free cash flow grows about +26.0% a year (fading to 2.5% long-run) at a 8.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.6%/yr | 9.5% | $29.89 |
| Base case | 7.6%/yr | 8.5% | $38.35 |
| Optimistic | 10.6%/yr | 7.5% | $51.02 |
Current Price
$75.62
Market-Implied Growth
+26.0%/yr
vs +7.6% 5Y actual
Model Scenario Range
$29.89 – $51.02
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 LIVN (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 $89.7M · 0.05B shares · net cash $210.6M
Estimated Fair Value
$38.35
-49.3% vs $75.62
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $75.62; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.5% | $46.90 | $50.99 | $56.09 | $62.65 | $71.38 |
| 7.5% | $39.53 | $42.22 | $45.44 | $49.38 | $54.29 |
| 8.5% | $34.27 | $36.15 | $38.35 | $40.94 | $44.04 |
| 9.5% | $30.33 | $31.71 | $33.28 | $35.10 | $37.22 |
| 10.5% | $27.27 | $28.32 | $29.49 | $30.83 | $32.35 |
