Using an unlevered Free Cash Flow to Firm (FCFF) model, we project IDEXX Laboratories, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 8.8% to 13.6% 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 53, DPO 28, DIO 89). At a 7.8% WACC with mid-year discounting, the terminal value (85% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $391.56 per share, suggesting IDXX is overvalued by 32.2% at the current price of $577.64.
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 | 1,322 | 1,437 | 1,576 | 1,741 | 1,977 | 2,027 |
| (−) Net Interest | 46 | 50 | 55 | 61 | 69 | 71 |
| (+) D&A | 132 | 141 | 148 | 162 | 180 | 185 |
| EBITDA | 1,500 | 1,629 | 1,779 | 1,964 | 2,226 | 2,282 |
| (−) Tax | 262 | 284 | 312 | 344 | 391 | — |
| (−) CapEx | 169 | 184 | 201 | 222 | 253 | — |
| (−) ΔWC | 31 | 86 | 104 | 124 | 177 | — |
| Free Cash Flow (FCF) | 1,039 | 1,075 | 1,162 | 1,273 | 1,406 | — |
| Peers' EBITDA Multiple | 17.6x | |||||
| Terminal Value | 40,049 | |||||
| WACC / Discount Rate | 7.75% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,001 | 961 | 964 | 980 | 1,005 | 27,571 |
| Enterprise Value | 32,483 | |||||
| Projection Period | 4,912 | 15.1% | ||||
| Terminal Value | 27,571 | 84.9% | ||||
| (−) Current Net Debt | 897 | |||||
| Equity Value | 31,585 | |||||
| (÷) Outstanding Shares | 81M | |||||
| Fair Price | $392 | -32.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 13.6x | 15.6x | 17.6x | 19.6x | 21.6x |
|---|---|---|---|---|---|
| 5.8% | $343 | $385 | $428 | $471 | $514 |
| 6.8% | $328 | $369 | $409 | $450 | $491 |
| 7.8% | $314 | $353 | $392 | $431 | $469 |
| 8.8% | $300 | $338 | $375 | $412 | $449 |
| 9.8% | $288 | $323 | $359 | $394 | $430 |
Current price: $577.64. 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.