Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Intuit Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 12.8% to 14.6% 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 30, DPO 95, DIO 60). At a 9.1% WACC with mid-year discounting, the terminal value (89% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 28.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $705.31 per share, suggesting INTU is undervalued by 62.5% at the current price of $433.96.
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 | 5,410 | 6,081 | 6,837 | 7,905 | 9,056 | 9,282 |
| (−) Net Interest | 232 | 261 | 293 | 339 | 389 | 398 |
| (+) D&A | 198 | 233 | 255 | 279 | 317 | 325 |
| EBITDA | 5,839 | 6,575 | 7,385 | 8,523 | 9,762 | 10,006 |
| (−) Tax | 1,026 | 1,153 | 1,296 | 1,499 | 1,717 | — |
| (−) CapEx | 302 | 339 | 381 | 441 | 505 | — |
| (−) ΔWC | 153 | 167 | 188 | 265 | 286 | — |
| Free Cash Flow (FCF) | 4,359 | 4,916 | 5,520 | 6,318 | 7,254 | — |
| Peers' EBITDA Multiple | 28.0x | |||||
| Terminal Value | 279,866 | |||||
| WACC / Discount Rate | 9.12% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 4,173 | 4,313 | 4,438 | 4,655 | 4,898 | 180,911 |
| Enterprise Value | 203,389 | |||||
| Projection Period | 22,478 | 11.1% | ||||
| Terminal Value | 180,911 | 88.9% | ||||
| (−) Current Net Debt | 3,755 | |||||
| Equity Value | 199,634 | |||||
| (÷) Outstanding Shares | 283M | |||||
| Fair Price | $705 | +62.6% | ||||
| WACC \ EV/EBITDA Exit Multiple | 24.0x | 26.0x | 28.0x | 30.0x | 32.0x |
|---|---|---|---|---|---|
| 7.1% | $671 | $721 | $771 | $821 | $871 |
| 8.1% | $642 | $689 | $737 | $785 | $833 |
| 9.1% | $614 | $660 | $705 | $751 | $797 |
| 10.1% | $588 | $631 | $675 | $719 | $762 |
| 11.1% | $563 | $604 | $646 | $688 | $730 |
Current price: $433.96. 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.