As of April 4, 2026, Steris plc has a Discounted Cash Flow (DCF) derived fair value of $388.71 per share. With the current market price at $218.71, this represents a potential upside of 77.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $293.03 |
| DCF Fair Value (10-year) | $388.71 |
| Potential Upside (5-year) | 34.0% |
| Potential Upside (10-year) | 77.7% |
| Discount Rate (WACC) | 6.8% - 9.0% |
Revenue is projected to grow from $5460 million in 03-2025 to $11154 million by 03-2035, representing a compound annual growth rate of approximately 7.4%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2025 | 5460 | 6% |
| 03-2026 | 5964 | 9% |
| 03-2027 | 6373 | 7% |
| 03-2028 | 6708 | 5% |
| 03-2029 | 7301 | 9% |
| 03-2030 | 7759 | 6% |
| 03-2031 | 8478 | 9% |
| 03-2032 | 9002 | 6% |
| 03-2033 | 9768 | 9% |
| 03-2034 | 10558 | 8% |
| 03-2035 | 11154 | 6% |
Net profit margin is expected to improve from 11% in 03-2025 to 23% by 03-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2025 | 612 | 11% |
| 03-2026 | 796 | 13% |
| 03-2027 | 981 | 15% |
| 03-2028 | 1163 | 17% |
| 03-2029 | 1400 | 19% |
| 03-2030 | 1624 | 21% |
| 03-2031 | 1803 | 21% |
| 03-2032 | 1944 | 22% |
| 03-2033 | 2141 | 22% |
| 03-2034 | 2348 | 22% |
| 03-2035 | 2517 | 23% |
with a 5-year average of $324 million. Projected CapEx is expected to maintain at approximately 7% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2026 | 360 |
| 03-2027 | 392 |
| 03-2028 | 413 |
| 03-2029 | 444 |
| 03-2030 | 478 |
| 03-2031 | 514 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 70 |
| Days Inventory | 81 |
| Days Payables | 34 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2026 | 370 | 60 | 105 | 53 | 153 |
| 2027 | 1760 | 296 | 447 | 75 | 942 |
| 2028 | 2023 | 351 | 470 | 36 | 1166 |
| 2029 | 2371 | 423 | 512 | 150 | 1286 |
| 2030 | 2703 | 490 | 544 | 87 | 1582 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 293.03 | 34.0% |
| 10-Year DCF (Growth) | 388.71 | 77.7% |
| 5-Year DCF (EBITDA) | 285.35 | 30.5% |
| 10-Year DCF (EBITDA) | 374.44 | 71.2% |
Is Steris plc (STE) a buy or a sell? Steris plc is definitely a buy. Based on our DCF analysis, Steris plc (STE) appears to be significantly undervalued with upside potential of 77.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $218.71.