Snowflake Inc. (SNOW) DCF Valuation
A discounted-cash-flow model values Snowflake Inc. (SNOW) at about $40.57 (TGM base case). Today's price of $239.66 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $239.66, the market is pricing in roughly +29.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 3-year FCF CAGR of +23.8%. The price is betting on acceleration above its track record.
Current Price
$239.66
Fair-Value Range
$40.57
Market-Implied Growth
+29.9%/yr
vs +23.8% 5Y actual
SNOW DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $827.3M · 0.35B shares · net cash $498.7M
Estimated Fair Value
$40.57
-83.1% vs $239.66
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $239.66; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $50.07 | $52.56 | $55.51 | $59.05 | $63.37 |
| 9.0% | $43.21 | $44.91 | $46.88 | $49.18 | $51.89 |
| 10.0% | $37.98 | $39.20 | $40.57 | $42.14 | $43.95 |
| 11.0% | $33.88 | $34.77 | $35.76 | $36.88 | $38.14 |
| 12.0% | $30.57 | $31.23 | $31.97 | $32.79 | $33.71 |
About Snowflake Inc.
Snowflake Inc. delivers a cloud-centric data platform to customers across both the United States and international markets. The company's core offering, known as the Data Cloud, enables users to unify disparate data sources into a singular, reliable foundation. This unified data then facilitates the extraction of crucial business intelligence, the creation of innovative data-driven applications, and secure data sharing. This adaptable platform serves a wide array of organizations, encompassing various sizes and industries. Originating in 2012, the enterprise was initially recognized as Snowflake Computing, Inc., before officially rebranding to Snowflake Inc. in April 2019. Its principal operations are conducted from Bozeman, Montana.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Sridhar Ramaswamy