TGM's two-stage DCF values STERIS plc (STE) between $87.60 and $168.86 depending on assumptions, with a base case of $120.30. 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 (8.7%) reflects its beta.
What would today's price require?
$236.25 is justified only if free cash flow grows about +21.2% a year (fading to 2.5% long-run) at a 8.7% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 2.9%/yr | 9.7% | $87.60 |
| Base case | 5.9%/yr | 8.7% | $120.30 |
| Optimistic | 8.9%/yr | 7.7% | $168.86 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 10, 2026 · assumptions not provided | $260.33 | |
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
$236.25
Market-Implied Growth
+21.2%/yr
vs +16.9% 5Y actual
Model Scenario Range
$87.60 – $168.86
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 STE (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 $695.5M · 0.10B shares · net debt $1.5B
Estimated Fair Value
$120.30
-49.1% vs $236.25
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $236.25; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.7% | $153 | $168 | $186 | $210 | $241 |
| 7.7% | $125 | $135 | $147 | $161 | $179 |
| 8.7% | $105 | $112 | $120 | $130 | $142 |
| 9.7% | $89.80 | $95.08 | $101 | $108 | $116 |
| 10.7% | $78.01 | $82.03 | $86.54 | $91.63 | $97.41 |
