As of June 22, 2025, FTI Consulting Inc's estimated intrinsic value ranges from $71.63 to $278.95 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $278.95 | +75.7% |
| Discounted Cash Flow (5Y) | $206.62 | +30.1% |
| Dividend Discount Model (Multi-Stage) | $117.71 | -25.9% |
| Dividend Discount Model (Stable) | $71.63 | -54.9% |
| Earnings Power Value | $119.48 | -24.7% |
Is FTI Consulting Inc (FCN) undervalued or overvalued?
With the current market price at $158.77, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate FTI Consulting Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.06 | 1.19 |
| Cost of equity | 8.8% | 11.5% |
| Cost of debt | 4.5% | 4.5% |
| Tax rate | 20.6% | 21.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.1% | 7.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $207 | $7,094M | 78.8% |
| 10-Year Growth | $279 | $9,574M | 64.0% |
| 5-Year EBITDA | $221 | $7,586M | 80.2% |
| 10-Year EBITDA | $291 | $10,000M | 65.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $278M |
| Discount Rate (WACC) | 7.5% - 6.1% |
| Enterprise Value | $3,688M - $4,524M |
| Net Debt | $9M |
| Equity Value | $3,679M - $4,515M |
| Outstanding Shares | 34M |
| Fair Value | $107 - $132 |
| Selected Fair Value | $119.48 |
| Metric | Value |
|---|---|
| Market Capitalization | $5444M |
| Enterprise Value | $5453M |
| Trailing P/E | 20.78 |
| Forward P/E | 16.93 |
| Trailing EV/EBITDA | 11.30 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.03 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $83.69 |
| Discounted Cash Flow (5Y) | 25% | $51.66 |
| Dividend Discount Model (Multi-Stage) | 20% | $23.54 |
| Dividend Discount Model (Stable) | 15% | $10.74 |
| Earnings Power Value | 10% | $11.95 |
| Weighted Average | 100% | $181.58 |
Based on our comprehensive valuation analysis, FTI Consulting Inc's weighted average intrinsic value is $181.58, which is approximately 14.4% above the current market price of $158.77.
Key investment considerations:
Given these factors, we believe FTI Consulting Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.