TGM's two-stage DCF values Lamb Weston Holdings, Inc. (LW) between $0.81 and $28.36 depending on assumptions, with a base case of $11.41. 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 (7.5%) reflects its beta.
What would today's price require?
$46.57 is justified only if free cash flow grows about +29.1% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 10.1%/yr | 8.5% | $0.81 |
| Base case | 13.1%/yr | 7.5% | $11.41 |
| Optimistic | 16.1%/yr | 6.5% | $28.36 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 13, 2026 · assumptions not provided | $29.91 | |
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
$46.57
Market-Implied Growth
+29.1%/yr
vs +13.6% 5Y actual
Model Scenario Range
$0.81 – $28.36
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 LW (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 $168.9M · 0.14B shares · net debt $3.8B
Estimated Fair Value
$11.41
-75.5% vs $46.57
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 13.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $46.57; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $23.58 | $30.18 | $38.96 | $51.26 | $69.70 |
| 6.5% | $12.84 | $16.79 | $21.73 | $28.08 | $36.53 |
| 7.5% | $5.70 | $8.30 | $11.41 | $15.22 | $19.97 |
| 8.5% | $0.61 | $2.43 | $4.55 | $7.06 | $10.06 |
| 9.5% | N/A | N/A | N/A | $1.41 | $3.46 |