Using an unlevered Free Cash Flow to Firm (FCFF) model, we project IDEX Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.1% to 5.8% 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 51, DPO 44, DIO 96). At a 8.5% WACC with mid-year discounting, the terminal value (85% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 20.7x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $221.36 per share, suggesting IEX is undervalued by 16.2% at the current price of $190.46.
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 | 733 | 765 | 802 | 878 | 928 | 951 |
| (−) Net Interest | 53 | 55 | 58 | 64 | 67 | 69 |
| (+) D&A | 72 | 73 | 77 | 76 | 83 | 85 |
| EBITDA | 858 | 894 | 937 | 1,018 | 1,078 | 1,105 |
| (−) Tax | 162 | 169 | 178 | 194 | 205 | — |
| (−) CapEx | 81 | 84 | 88 | 97 | 102 | — |
| (−) ΔWC | -14 | 33 | 39 | 78 | 52 | — |
| Free Cash Flow (FCF) | 629 | 607 | 632 | 648 | 718 | — |
| Peers' EBITDA Multiple | 20.7x | |||||
| Terminal Value | 22,918 | |||||
| WACC / Discount Rate | 8.47% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 604 | 537 | 516 | 488 | 498 | 15,263 |
| Enterprise Value | 17,906 | |||||
| Projection Period | 2,643 | 14.8% | ||||
| Terminal Value | 15,263 | 85.2% | ||||
| (−) Current Net Debt | 1,241 | |||||
| Equity Value | 16,665 | |||||
| (÷) Outstanding Shares | 75M | |||||
| Fair Price | $221 | +16.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 16.7x | 18.7x | 20.7x | 22.7x | 24.7x |
|---|---|---|---|---|---|
| 6.5% | $200 | $221 | $243 | $264 | $286 |
| 7.5% | $191 | $211 | $232 | $252 | $273 |
| 8.5% | $182 | $202 | $221 | $241 | $260 |
| 9.5% | $174 | $193 | $212 | $230 | $249 |
| 10.5% | $166 | $184 | $202 | $220 | $238 |
Current price: $190.46. 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.