Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Bio-Techne Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 0.4% to 11.8% 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 66, DPO 31, DIO 158). At a 7.6% WACC with mid-year discounting, the terminal value (80% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $36.68 per share, suggesting TECH is overvalued by 30.4% at the current price of $52.70.
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 | 316 | 336 | 369 | 394 | 440 | 451 |
| (−) Net Interest | 14 | 14 | 16 | 17 | 19 | 19 |
| (+) D&A | 44 | 45 | 47 | 51 | 50 | 52 |
| EBITDA | 374 | 396 | 432 | 462 | 510 | 522 |
| (−) Tax | 44 | 46 | 51 | 54 | 61 | — |
| (−) CapEx | 49 | 53 | 58 | 62 | 69 | — |
| (−) ΔWC | -9 | 23 | 38 | 28 | 53 | — |
| Free Cash Flow (FCF) | 290 | 274 | 285 | 317 | 327 | — |
| Peers' EBITDA Multiple | 13.5x | |||||
| Terminal Value | 7,057 | |||||
| WACC / Discount Rate | 7.58% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 279 | 245 | 237 | 246 | 235 | 4,898 |
| Enterprise Value | 6,140 | |||||
| Projection Period | 1,243 | 20.2% | ||||
| Terminal Value | 4,898 | 79.8% | ||||
| (−) Current Net Debt | 282 | |||||
| Equity Value | 5,859 | |||||
| (÷) Outstanding Shares | 160M | |||||
| Fair Price | $37 | -30.4% | ||||
| WACC \ EV/EBITDA Exit Multiple | 9.5x | 11.5x | 13.5x | 15.5x | 17.5x |
|---|---|---|---|---|---|
| 5.6% | $30 | $35 | $40 | $45 | $50 |
| 6.6% | $29 | $34 | $38 | $43 | $48 |
| 7.6% | $28 | $32 | $37 | $41 | $46 |
| 8.6% | $26 | $31 | $35 | $39 | $44 |
| 9.6% | $25 | $30 | $34 | $38 | $42 |
Current price: $52.70. 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.