TGM's two-stage DCF values KBR, Inc. (KBR) between $29.57 and $75.59 depending on assumptions, with a base case of $47.28. 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 (7.5%) reflects its beta.
What would today's price require?
$37.94 is justified only if free cash flow grows about +2.2% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 2.7%/yr | 8.5% | $29.57 |
| Base case | 5.7%/yr | 7.5% | $47.28 |
| Optimistic | 8.7%/yr | 6.5% | $75.59 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 4, 2026 · assumptions not provided | $285.11 | |
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
$37.94
Market-Implied Growth
+2.2%/yr
vs +5.7% 5Y actual
Model Scenario Range
$29.57 – $75.59
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 KBR (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 $355.0M · 0.13B shares · net debt $2.4B
Estimated Fair Value
$47.28
+24.6% vs $37.94
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $37.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $67.07 | $77.81 | $92.13 | $112 | $142 |
| 6.5% | $49.59 | $56.04 | $64.09 | $74.44 | $88.22 |
| 7.5% | $37.94 | $42.19 | $47.28 | $53.49 | $61.25 |
| 8.5% | $29.63 | $32.61 | $36.08 | $40.17 | $45.08 |
| 9.5% | $23.41 | $25.59 | $28.09 | $30.96 | $34.30 |
