TGM's two-stage DCF values Solventum Corporation (SOLV) between $77.18 and $166.10 depending on assumptions, with a base case of $109.31. Growth is taken from the company's own record (5-year revenue CAGR), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$89.56 is justified only if free cash flow grows about -1.0% 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 | 0.5%/yr | 8.5% | $77.18 |
| Base case | 2.7%/yr | 7.5% | $109.31 |
| Optimistic | 5.7%/yr | 6.5% | $166.10 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 10, 2026 · assumptions not provided | $140.22 | |
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
$89.56
Market-Implied Growth
-1.0%/yr
vs +2.7% 5Y actual
Model Scenario Range
$77.18 – $166.10
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 SOLV (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 $1.1B · 0.17B shares · net debt $4.2B
Estimated Fair Value
$109.31
+22.1% vs $89.56
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $89.56; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $149 | $170 | $198 | $238 | $298 |
| 6.5% | $114 | $127 | $143 | $163 | $191 |
| 7.5% | $90.77 | $99.20 | $109 | $122 | $137 |
| 8.5% | $74.26 | $80.18 | $87.07 | $95.20 | $105 |
| 9.5% | $61.89 | $66.23 | $71.18 | $76.89 | $83.54 |
