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HEICO Corp Logo
Price: 175.9 USD +2.85% Market Closed
Updated: Dec 4, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Dec 3, 2023.

Estimated DCF Value of one HEI stock is 68.6 USD. Compared to the current market price of 175.9 USD, the stock is Overvalued by 61%.

Base Case
68.6 USD
Overvaluation 61%
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 68.6 USD
HEICO Corp Competitors:
DCF Valuation
TransDigm Group Inc
Mercury Systems Inc
National Presto Industries Inc
Northrop Grumman Corp
Park Aerospace Corp
L3harris Technologies Inc
Lockheed Martin Corp
Parsons Corp

Valuation Analysis

DCF Financials
Financials used in DCF Calculation

3.6B 4.8B
Operating Income
744m 1B
674m 842m

Sensitivity Analysis
DCF Value Sensitivity Analysis

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on Dec 3, 2023
Default Valuation
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Model Settings
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
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DCF Model
Base Case Scenario

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DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 10.2B USD
+ Cash & Equivalents 694m USD
Firm Value 10.9B USD
- Debt 1.2B USD
- Minority Interest 389m USD
Equity Value 9.3B USD
/ Shares Outstanding 135m
HEI DCF Value 68.6 USD
Overvalued by 61%

To view the process of calculating the Present Value of HEICO Corp' future free cash flow, see the Present Value Calculation block.

See Also

Discover More

What is the DCF value of one HEI stock?

Estimated DCF Value of one HEI stock is 68.6 USD. Compared to the current market price of 175.9 USD, the stock is Overvalued by 61%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project HEICO Corp's future free cash flow and discount it at a selected discount rate to calculate its Present Value (10.2B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 68.6 USD per one HEI share.