Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Fortive Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -16.1% to 4.0% 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 57, DPO 90, DIO 75). At a 8.8% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.7x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $21.89 per share, suggesting FTV is overvalued by 60.2% at the current price of $55.06.
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 | 672 | 698 | 727 | 749 | 779 | 798 |
| (−) Net Interest | 91 | 94 | 98 | 101 | 105 | 108 |
| (+) D&A | 96 | 100 | 96 | 90 | 82 | 84 |
| EBITDA | 858 | 893 | 921 | 940 | 966 | 990 |
| (−) Tax | 87 | 90 | 94 | 97 | 101 | — |
| (−) CapEx | 72 | 75 | 78 | 80 | 84 | — |
| (−) ΔWC | 62 | 23 | 26 | 20 | 27 | — |
| Free Cash Flow (FCF) | 637 | 704 | 723 | 743 | 755 | — |
| Peers' EBITDA Multiple | 10.7x | |||||
| Terminal Value | 10,583 | |||||
| WACC / Discount Rate | 8.81% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 611 | 620 | 586 | 553 | 516 | 6,940 |
| Enterprise Value | 9,826 | |||||
| Projection Period | 2,887 | 29.4% | ||||
| Terminal Value | 6,940 | 70.6% | ||||
| (−) Current Net Debt | 2,831 | |||||
| Equity Value | 6,996 | |||||
| (÷) Outstanding Shares | 319M | |||||
| Fair Price | $22 | -60.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 6.7x | 8.7x | 10.7x | 12.7x | 14.7x |
|---|---|---|---|---|---|
| 6.8% | $16 | $20 | $24 | $29 | $33 |
| 7.8% | $15 | $19 | $23 | $27 | $32 |
| 8.8% | $14 | $18 | $22 | $26 | $30 |
| 9.8% | $13 | $17 | $21 | $25 | $28 |
| 10.8% | $12 | $16 | $20 | $23 | $27 |
Current price: $55.06. 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.