TGM's two-stage DCF values ScanSource, Inc. (SCSC) between $57.66 and $90.31 depending on assumptions, with a base case of $69.28. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (floored at 2%)), fading to 2.5% long-run; the discount rate (10.2%) reflects its beta.
What would today's price require?
$60.94 is justified only if free cash flow grows about -1.1% a year (fading to 2.5% long-run) at a 10.2% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 11.2% | $57.66 |
| Base case | 2.0%/yr | 10.2% | $69.28 |
| Optimistic | 5.0%/yr | 9.2% | $90.31 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 6, 2026 · assumptions not provided | $36.94 | |
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
$60.94
Market-Implied Growth
-1.1%/yr
vs -9.9% 5Y actual
Model Scenario Range
$57.66 – $90.31
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 SCSC (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 $109.0M · 0.02B shares · net debt $13.0M
Estimated Fair Value
$69.28
+13.7% vs $60.94
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $60.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.2% | $82.29 | $87.55 | $93.73 | $101 | $110 |
| 9.2% | $71.49 | $75.30 | $79.68 | $84.76 | $90.71 |
| 10.2% | $63.17 | $66.04 | $69.28 | $72.96 | $77.19 |
| 11.2% | $56.57 | $58.79 | $61.27 | $64.04 | $67.17 |
| 12.2% | $51.20 | $52.97 | $54.91 | $57.06 | $59.45 |
