TGM's two-stage DCF values STERIS plc (STE) between $130.57 and $247.01 depending on assumptions, with a base case of $177.44. 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 (8.7%) reflects its beta.
What would today's price require?
$208.77 is justified only if free cash flow grows about +18.3% 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 | 11.5%/yr | 9.7% | $130.57 |
| Base case | 14.5%/yr | 8.7% | $177.44 |
| Optimistic | 17.5%/yr | 7.7% | $247.01 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 13, 2026 · assumptions not provided | $237.84 | |
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
$208.77
Market-Implied Growth
+18.3%/yr
vs +16.9% 5Y actual
Model Scenario Range
$130.57 – $247.01
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
$177.44
-15.0% vs $208.77
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 14.5%/yr FCF growth and 10-year horizon fixed. Green = above today's $208.77; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.7% | $225 | $248 | $275 | $310 | $356 |
| 7.7% | $184 | $199 | $217 | $238 | $265 |
| 8.7% | $155 | $165 | $177 | $192 | $209 |
| 9.7% | $132 | $140 | $149 | $159 | $171 |
| 10.7% | $115 | $121 | $128 | $135 | $144 |
