Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Jabil Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 14.3% to 0.4% 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 56, DPO 89, DIO 63). At a 9.2% WACC with mid-year discounting, the terminal value (93% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 20.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $366.55 per share, suggesting JBL is undervalued by 37.5% at the current price of $266.64.
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 | 1,365 | 1,489 | 1,595 | 1,602 | 1,610 | 1,650 |
| (−) Net Interest | 198 | 216 | 231 | 232 | 233 | 239 |
| (+) D&A | 965 | 943 | 894 | 932 | 1,021 | 1,046 |
| EBITDA | 2,528 | 2,647 | 2,721 | 2,767 | 2,864 | 2,935 |
| (−) Tax | 348 | 379 | 407 | 408 | 410 | — |
| (−) CapEx | 1,046 | 1,140 | 1,222 | 1,228 | 1,233 | — |
| (−) ΔWC | 1,166 | 272 | 235 | 15 | 15 | — |
| Free Cash Flow (FCF) | -31 | 856 | 857 | 1,116 | 1,205 | — |
| Peers' EBITDA Multiple | 20.6x | |||||
| Terminal Value | 60,497 | |||||
| WACC / Discount Rate | 9.15% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -30 | 750 | 688 | 821 | 813 | 39,047 |
| Enterprise Value | 42,090 | |||||
| Projection Period | 3,043 | 7.2% | ||||
| Terminal Value | 39,047 | 92.8% | ||||
| (−) Current Net Debt | 1,433 | |||||
| Equity Value | 40,657 | |||||
| (÷) Outstanding Shares | 111M | |||||
| Fair Price | $367 | +37.5% | ||||
| WACC \ EV/EBITDA Exit Multiple | 16.6x | 18.6x | 20.6x | 22.6x | 24.6x |
|---|---|---|---|---|---|
| 7.2% | $327 | $365 | $402 | $440 | $477 |
| 8.2% | $312 | $348 | $384 | $420 | $455 |
| 9.2% | $298 | $332 | $367 | $401 | $435 |
| 10.2% | $285 | $317 | $350 | $383 | $415 |
| 11.2% | $272 | $303 | $335 | $366 | $397 |
Current price: $266.64. 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.