Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Cooper Companies, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.6% to 8.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 66, DPO 71, DIO 210). At a 7.1% WACC with mid-year discounting, the terminal value (66% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $39.98 per share, suggesting COO is overvalued by 44.4% at the current price of $71.86.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 797 | 839 | 884 | 929 | 1,010 | 1,035 |
| (−) Net Interest | 94 | 98 | 104 | 109 | 119 | 122 |
| (+) D&A | 326 | 362 | 396 | 404 | 411 | 421 |
| EBITDA | 1,217 | 1,299 | 1,384 | 1,442 | 1,540 | 1,578 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 391 | 411 | 434 | 456 | 496 | — |
| (−) ΔWC | -15 | 70 | 78 | 76 | 139 | — |
| Free Cash Flow (FCF) | 842 | 817 | 872 | 910 | 905 | — |
| Peers' EBITDA Multiple | 6.3x | |||||
| Terminal Value | 9,895 | |||||
| WACC / Discount Rate | 7.14% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 813 | 737 | 734 | 715 | 664 | 7,009 |
| Enterprise Value | 10,672 | |||||
| Projection Period | 3,663 | 34.3% | ||||
| Terminal Value | 7,009 | 65.7% | ||||
| (−) Current Net Debt | 2,673 | |||||
| Equity Value | 7,999 | |||||
| (÷) Outstanding Shares | 200M | |||||
| Fair Price | $40 | -44.3% | ||||
| WACC \ EV/EBITDA Exit Multiple | 2.3x | 4.3x | 6.3x | 8.3x | 10.3x |
|---|---|---|---|---|---|
| 5.1% | $20 | $32 | $44 | $57 | $69 |
| 6.1% | $19 | $30 | $42 | $54 | $66 |
| 7.1% | $18 | $29 | $40 | $51 | $62 |
| 8.1% | $17 | $27 | $38 | $49 | $59 |
| 9.1% | $16 | $26 | $36 | $46 | $56 |
Current price: $71.86. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.