TGM's two-stage DCF values Rambus Inc. (RMBS) between $32.81 and $49.78 depending on assumptions, with a base case of $40.82. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (capped at 18%)), fading to 2.5% long-run; the discount rate (11.5%) reflects its beta.
What would today's price require?
$87.06 is justified only if free cash flow grows about +39.4% a year (fading to 2.5% long-run) at a 11.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 15.0%/yr | 12.5% | $32.81 |
| Base case | 18.0%/yr | 11.5% | $40.82 |
| Optimistic | 20.0%/yr | 10.5% | $49.78 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 29, 2026 · assumptions not provided | $27.37 | |
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
$87.06
Market-Implied Growth
+39.4%/yr
vs +16.5% 5Y actual
Model Scenario Range
$32.81 – $49.78
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 RMBS (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 $204.9M · 0.11B shares · net cash $164.2M
Estimated Fair Value
$40.82
-53.1% vs $87.06
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $87.06; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.5% | $47.76 | $50.31 | $53.22 | $56.58 | $60.48 |
| 10.5% | $42.13 | $44.06 | $46.23 | $48.69 | $51.49 |
| 11.5% | $37.65 | $39.15 | $40.82 | $42.68 | $44.77 |
| 12.5% | $34.00 | $35.19 | $36.51 | $37.96 | $39.56 |
| 13.5% | $30.97 | $31.94 | $32.99 | $34.15 | $35.42 |
