nVent Electric plc (NVT) DCF Valuation
Why we don't show a single “fair value” for NVT
Even the optimistic scenario of a conservative trailing-FCF model ($62.58) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. The honest lens is the question below: what growth does today's price actually require? The model scenarios are listed further down for reference.
What would today's price require?
$171.91 is justified only if free cash flow grows about +49.2% a year (fading to 2.5% long-run) at a 10.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 13.4%/yr | 11.8% | $34.97 |
| Base case | 16.4%/yr | 10.8% | $46.59 |
| Optimistic | 19.4%/yr | 9.8% | $62.58 |
| Analyst DCF (FMP) | independent reference — different model | $69.19 | |
Current Price
$171.91
Market-Implied Growth
+49.2%/yr
vs +16.4% 5Y actual
Base-Case Model Value
$46.59
model output — not a price target
NVT 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 NVT (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 $417.2M · 0.16B shares · net debt $1.4B
Estimated Fair Value
$77.97
-54.6% vs $171.91
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 16.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $171.91; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.8% | $100 | $106 | $112 | $120 | $129 |
| 9.8% | $84.26 | $88.18 | $92.64 | $97.75 | $104 |
| 10.8% | $71.91 | $74.77 | $77.97 | $81.59 | $85.69 |
| 11.8% | $62.10 | $64.24 | $66.61 | $69.24 | $72.20 |
| 12.8% | $54.15 | $55.78 | $57.57 | $59.54 | $61.73 |
About nVent Electric plc
nVent Electric plc specializes in the global design, production, distribution, installation, and upkeep of electrical connection and protective equipment. Its operations are structured across three distinct divisions. The Enclosures segment offers critical protective and connective solutions for sensitive electronic, communication, control, and power apparatus. It also supplies robust physical infrastructure for hosting and safeguarding server and network equipment, alongside indoor and outdoor protective gear for instrumentation in aerospace and defense applications. These solutions cater to industrial, infrastructural, commercial, and energy sectors, encompassing a product range including metal and non-metal enclosures, cabinets, sub-racks, and backplanes. The Electrical & Fastening Solutions unit delivers specialized fastening devices engineered to secure and shield electrical, mechanical, and civil structural systems, along with a variety of other purpose-built electrical and fastening items. Within the Thermal Management segment, the company furnishes electric thermal systems designed to connect and safeguard structures, infrastructure, industrial operations, and individuals. This includes comprehensive thermal regulation systems like heat tracing, underfloor heating, fire-resistant and specialized wiring, sensing technologies, and snow/ice removal solutions. Products are marketed under prominent brand names such as CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF, and TRACER. Its distribution network includes electrical wholesale partners, data center installation specialists, original equipment manufacturers (OEMs), and maintenance service providers. Clientele spans diverse sectors, including energy, manufacturing, infrastructure, and both commercial and residential markets. Established in 1903, the enterprise maintains its headquarters in London, United Kingdom.
- Sector
- Industrials
- Industry
- Electrical Equipment & Parts
- CEO
- Beth A. Wozniak