Using an unlevered Free Cash Flow to Firm (FCFF) model, we project DuPont de Nemours, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to -10.0% 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 72, DPO 80, DIO 92). At a 8.4% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 30.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $69.22 per share, suggesting DD is undervalued by 50.1% at the current price of $46.11.
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 | 757 | 786 | 816 | 734 | 661 | 677 |
| (−) Net Interest | 267 | 277 | 288 | 259 | 233 | 239 |
| (+) D&A | 633 | 533 | 466 | 426 | 386 | 396 |
| EBITDA | 1,658 | 1,596 | 1,569 | 1,419 | 1,280 | 1,312 |
| (−) Tax | 187 | 193 | 201 | 181 | 163 | — |
| (−) CapEx | 391 | 406 | 421 | 379 | 341 | — |
| (−) ΔWC | -280 | 59 | 62 | -169 | -152 | — |
| Free Cash Flow (FCF) | 1,360 | 938 | 885 | 1,028 | 928 | — |
| Peers' EBITDA Multiple | 30.9x | |||||
| Terminal Value | 40,591 | |||||
| WACC / Discount Rate | 8.36% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,307 | 832 | 724 | 776 | 647 | 27,172 |
| Enterprise Value | 31,458 | |||||
| Projection Period | 4,285 | 13.6% | ||||
| Terminal Value | 27,172 | 86.4% | ||||
| (−) Current Net Debt | 2,437 | |||||
| Equity Value | 29,021 | |||||
| (÷) Outstanding Shares | 419M | |||||
| Fair Price | $69 | +50.1% | ||||
| WACC \ EV/EBITDA Exit Multiple | 26.9x | 28.9x | 30.9x | 32.9x | 34.9x |
|---|---|---|---|---|---|
| 6.4% | $67 | $71 | $76 | $81 | $85 |
| 7.4% | $64 | $68 | $73 | $77 | $81 |
| 8.4% | $61 | $65 | $69 | $73 | $78 |
| 9.4% | $58 | $62 | $66 | $70 | $74 |
| 10.4% | $56 | $59 | $63 | $67 | $71 |
Current price: $46.11. 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.