Snap-on Incorporated (SNA) DCF Valuation
TGM's two-stage DCF values Snap-on Incorporated (SNA) between $305.02 and $565.65 depending on assumptions, with a base case of $404.56. 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 (7.8%) reflects its beta.
What would today's price require?
$400.95 is justified only if free cash flow grows about +3.0% a year (fading to 2.5% long-run) at a 7.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 8.8% | $305.02 |
| Base case | 3.2%/yr | 7.8% | $404.56 |
| Optimistic | 6.2%/yr | 6.8% | $565.65 |
| Analyst DCF (FMP) | independent reference — different model | $382.37 | |
Current Price
$400.95
Market-Implied Growth
+3.0%/yr
vs +0.6% 5Y actual
Model Scenario Range
$305.02 – $565.65
model output — not a price target
SNA 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 SNA (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 $1.0B · 0.05B shares · net cash $360.1M
Estimated Fair Value
$414.21
+3.3% vs $400.95
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 3.2%/yr FCF growth and 10-year horizon fixed. Green = above today's $400.95; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.8% | $548 | $598 | $664 | $753 | $881 |
| 6.8% | $444 | $473 | $510 | $556 | $616 |
| 7.8% | $373 | $392 | $414 | $442 | $475 |
| 8.8% | $321 | $334 | $349 | $366 | $387 |
| 9.8% | $282 | $291 | $301 | $313 | $327 |
About Snap-on Incorporated
Snap-on Incorporated, a global provider based in Kenosha, Wisconsin, specializes in the production and distribution of an extensive range of tools, equipment, diagnostic systems, and repair information solutions for professional users worldwide. The company operates through its Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. Its comprehensive product portfolio includes a diverse selection of hand tools like wrenches, sockets, pliers, screwdrivers, cutting and pruning tools, and torque measuring instruments. Snap-on also supplies various power tools (cordless, pneumatic, hydraulic, and corded) and robust tool storage solutions such as chests and roll cabinets. Beyond physical tools, the firm delivers advanced diagnostic offerings, spanning handheld and computer-based products, specialized software, service and repair information, electronic parts catalogs, business management systems, point-of-sale systems, and integrated solutions for vehicle service shops. Additionally, it provides services for OEM purchasing facilitation and warranty management systems with analytics. The company's specialized equipment for vehicle and industrial machinery service includes wheel alignment systems, balancers, tire changers, vehicle lifts, test lane apparatus, collision repair tools, AC service units, brake service equipment, fluid exchange systems, transmission troubleshooting gear, safety testing devices, battery chargers, and hoists, all backed by after-sales support and training programs. To facilitate product sales and support its franchise business, Snap-on also offers financing programs. Its diverse clientele extends across aviation, aerospace, agriculture, construction, government, military, mining, natural resources, power generation, and technical education industries, alongside vehicle dealerships and repair centers. Snap-on Incorporated was founded in 1920.
- Sector
- Industrials
- Industry
- Manufacturing - Tools & Accessories
- CEO
- Nicholas T. Pinchuk