As of May 22, 2025, Intuit Inc's estimated intrinsic value ranges from $125.01 to $394.63 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $394.63 | -40.2% |
| Discounted Cash Flow (5Y) | $302.93 | -54.1% |
| Dividend Discount Model (Multi-Stage) | $246.57 | -62.6% |
| Dividend Discount Model (Stable) | $238.50 | -63.9% |
| Earnings Power Value | $125.01 | -81.1% |
Is Intuit Inc (INTU) undervalued or overvalued?
With the current market price at $659.98, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Intuit 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 | 0.81 | 1.02 |
| Cost of equity | 7.6% | 10.6% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 18.0% | 19.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| After-tax WACC | 7.5% | 10.3% |
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 | $303 | $88,512M | 81.1% |
| 10-Year Growth | $395 | $114,148M | 67.5% |
| 5-Year EBITDA | $571 | $163,368M | 89.7% |
| 10-Year EBITDA | $677 | $193,200M | 80.8% |
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 | $3,361M |
| Discount Rate (WACC) | 10.3% - 7.5% |
| Enterprise Value | $32,514M - $45,032M |
| Net Debt | $3,825M |
| Equity Value | $28,689M - $41,207M |
| Outstanding Shares | 280M |
| Fair Value | $103 - $147 |
| Selected Fair Value | $125.01 |
| Metric | Value |
|---|---|
| Market Capitalization | $184504M |
| Enterprise Value | $188329M |
| Trailing P/E | 60.75 |
| Forward P/E | 53.61 |
| Trailing EV/EBITDA | 33.10 |
| Current Dividend Yield | 59.45% |
| Dividend Growth Rate (5Y) | 16.52% |
| 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% | $118.39 |
| Discounted Cash Flow (5Y) | 25% | $75.73 |
| Dividend Discount Model (Multi-Stage) | 20% | $49.31 |
| Dividend Discount Model (Stable) | 15% | $35.78 |
| Earnings Power Value | 10% | $12.50 |
| Weighted Average | 100% | $291.71 |
Based on our comprehensive valuation analysis, Intuit Inc's weighted average intrinsic value is $291.71, which is approximately 55.8% below the current market price of $659.98.
Key investment considerations:
Given these factors, we believe Intuit Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.