STERIS plc (STE) DCF Valuation
TGM's two-stage DCF values STERIS plc (STE) between $134.88 and $254.84 depending on assumptions, with a base case of $183.17. 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 (8.7%) reflects its beta.
What would today's price require?
$210.60 is justified only if free cash flow grows about +18.5% a year (fading to 2.5% long-run) at a 8.7% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 12.2%/yr | 9.7% | $134.88 |
| Base case | 15.2%/yr | 8.7% | $183.17 |
| Optimistic | 18.2%/yr | 7.7% | $254.84 |
| Analyst DCF (FMP) | independent reference — different model | $273.95 | |
Current Price
$210.60
Market-Implied Growth
+18.5%/yr
vs +16.6% 5Y actual
Model Scenario Range
$134.88 – $254.84
model output — not a price target
STE DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for STE (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 $695.5M · 0.10B shares · net debt $1.5B
Estimated Fair Value
$294.79
+40.0% vs $210.60
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 15.2%/yr FCF growth and 10-year horizon fixed. Green = above today's $210.60; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.7% | $396 | $429 | $471 | $523 | $593 |
| 7.7% | $319 | $340 | $365 | $396 | $434 |
| 8.7% | $264 | $278 | $295 | $314 | $338 |
| 9.7% | $223 | $233 | $244 | $258 | $273 |
| 10.7% | $191 | $198 | $207 | $216 | $227 |
About STERIS plc
STERIS plc provides infection prevention products and services worldwide. It operates in three segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in procedure rooms, including surgical tables, lights, and connectivity solutions, as well as equipment management services. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services; preventive maintenance programs and repair services; instrument, devices, and endoscope repair and maintenance services; and custom process improvement consulting and outsourced instrument sterile processing services. The AST segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers through a network of contract sterilization and laboratory facilities, as well as integrated sterilization equipment and control systems to medical device manufacturers and research institutions. The Life Sciences segment designs, manufactures, and sells consumable products, such as pharmaceutical detergents, cleanroom disinfectants and sterilants, pharmaceutical grade and research sterilizers and washers, sterility assurance and maintenance products, vaporized hydrogen peroxide room decontamination systems and sterilizers, and high purity water and pure steam generators. This segment also offers equipment installation, maintenance, upgradation, repair, and troubleshooting services; and preventive maintenance programs and repair services. It serves its products and services to hospitals, other healthcare providers, and pharmaceutical manufacturers. The company was founded in 1985 and is headquartered in Mentor, Ohio.
- Sector
- Healthcare
- Industry
- Medical - Equipment & Services
- CEO
- Daniel A. Carestio