TGM's two-stage DCF values RAVE Restaurant Group, Inc. (RAVE) between $4.43 and $8.59 depending on assumptions, with a base case of $6.03. 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?
$2.29 is justified only if free cash flow grows about -12.6% 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 | 7.0%/yr | 8.5% | $4.43 |
| Base case | 10.0%/yr | 7.5% | $6.03 |
| Optimistic | 13.0%/yr | 6.5% | $8.59 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 6, 2026 · assumptions not provided | $5.08 | |
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
$2.29
Market-Implied Growth
-12.6%/yr
vs +10.0% 5Y actual
Model Scenario Range
$4.43 – $8.59
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 RAVE (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 $3.0M · 0.01B shares · net cash $1.1M
Estimated Fair Value
$6.03
+163.5% vs $2.29
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 10.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $2.29; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $7.85 | $8.83 | $10.15 | $11.98 | $14.73 |
| 6.5% | $6.25 | $6.84 | $7.57 | $8.52 | $9.78 |
| 7.5% | $5.18 | $5.57 | $6.03 | $6.60 | $7.31 |
| 8.5% | $4.42 | $4.69 | $5.01 | $5.38 | $5.83 |
| 9.5% | $3.85 | $4.05 | $4.28 | $4.54 | $4.85 |
