As of May 28, 2025, Trimble Inc has a Discounted Cash Flow (DCF) derived fair value of $104.64 per share. With the current market price at $71.92, this represents a potential upside of 45.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $97.24 |
| DCF Fair Value (10-year) | $104.64 |
| Potential Upside (5-year) | 35.2% |
| Potential Upside (10-year) | 45.5% |
| Discount Rate (WACC) | 8.0% - 11.3% |
Revenue is projected to grow from $3683 million in 01-2025 to $5206 million by 01-2035, representing a compound annual growth rate of approximately 3.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2025 | 3683 | 3% |
| 01-2026 | 3762 | 2% |
| 01-2027 | 4125 | 10% |
| 01-2028 | 4208 | 2% |
| 01-2029 | 4383 | 4% |
| 01-2030 | 4471 | 2% |
| 01-2031 | 4576 | 2% |
| 01-2032 | 4712 | 3% |
| 01-2033 | 4806 | 2% |
| 01-2034 | 5040 | 5% |
| 01-2035 | 5206 | 3% |
Net profit margin is expected to improve from 41% in 01-2025 to 47% by 01-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2025 | 1504 | 41% |
| 01-2026 | 1757 | 47% |
| 01-2027 | 1927 | 47% |
| 01-2028 | 1965 | 47% |
| 01-2029 | 2047 | 47% |
| 01-2030 | 2088 | 47% |
| 01-2031 | 2137 | 47% |
| 01-2032 | 2201 | 47% |
| 01-2033 | 2245 | 47% |
| 01-2034 | 2354 | 47% |
| 01-2035 | 2432 | 47% |
with a 5-year average of $44 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2026 | 42 |
| 01-2027 | 44 |
| 01-2028 | 45 |
| 01-2029 | 48 |
| 01-2030 | 52 |
| 01-2031 | 54 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 68 |
| Days Inventory | 69 |
| Days Payables | 43 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2026 | 1675 | 219 | 35 | 28 | 1393 |
| 2027 | 2446 | 320 | 52 | 58 | 2017 |
| 2028 | 2496 | 326 | 53 | 23 | 2094 |
| 2029 | 2600 | 340 | 55 | 40 | 2166 |
| 2030 | 2656 | 347 | 56 | 14 | 2239 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 97.24 | 35.2% |
| 10-Year DCF (Growth) | 104.64 | 45.5% |
| 5-Year DCF (EBITDA) | 156.04 | 117.0% |
| 10-Year DCF (EBITDA) | 147.52 | 105.1% |
Is Trimble Inc (TRMB) a buy or a sell? Trimble Inc is definitely a buy. Based on our DCF analysis, Trimble Inc (TRMB) appears to be significantly undervalued with upside potential of 45.5%. 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 $71.92.