Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Revvity, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.4% 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 80, DPO 57, DIO 100). At a 6.8% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 12.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $63.30 per share, suggesting RVTY is overvalued by 27.7% at the current price of $87.51.
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 | 503 | 528 | 556 | 587 | 621 | 637 |
| (−) Net Interest | 96 | 101 | 106 | 112 | 119 | 122 |
| (+) D&A | 83 | 82 | 81 | 83 | 84 | 86 |
| EBITDA | 681 | 710 | 744 | 782 | 824 | 845 |
| (−) Tax | 70 | 73 | 77 | 82 | 86 | — |
| (−) CapEx | 81 | 85 | 89 | 94 | 100 | — |
| (−) ΔWC | -118 | 41 | 46 | 51 | 55 | — |
| Free Cash Flow (FCF) | 649 | 511 | 531 | 556 | 583 | — |
| Peers' EBITDA Multiple | 12.1x | |||||
| Terminal Value | 10,231 | |||||
| WACC / Discount Rate | 6.85% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 628 | 463 | 450 | 441 | 433 | 7,347 |
| Enterprise Value | 9,762 | |||||
| Projection Period | 2,415 | 24.7% | ||||
| Terminal Value | 7,347 | 75.3% | ||||
| (−) Current Net Debt | 2,596 | |||||
| Equity Value | 7,165 | |||||
| (÷) Outstanding Shares | 113M | |||||
| Fair Price | $63 | -27.7% | ||||
| WACC \ EV/EBITDA Exit Multiple | 8.1x | 10.1x | 12.1x | 14.1x | 16.1x |
|---|---|---|---|---|---|
| 4.8% | $47 | $59 | $71 | $82 | $94 |
| 5.8% | $44 | $56 | $67 | $78 | $89 |
| 6.8% | $42 | $53 | $63 | $74 | $85 |
| 7.8% | $39 | $50 | $60 | $70 | $80 |
| 8.8% | $37 | $47 | $57 | $66 | $76 |
Current price: $87.51. 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.