As of June 17, 2025, Trimble Inc's estimated intrinsic value ranges from $9.67 to $103.29 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $103.29 | +41.7% |
| Discounted Cash Flow (5Y) | $96.00 | +31.7% |
| Dividend Discount Model (Multi-Stage) | $64.11 | -12.0% |
| Dividend Discount Model (Stable) | $9.67 | -86.7% |
| Earnings Power Value | $25.02 | -65.7% |
Is Trimble Inc (TRMB) undervalued or overvalued?
With the current market price at $72.88, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Trimble 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 | 0.95 | 1.29 |
| Cost of equity | 8.3% | 12.1% |
| Cost of debt | 5.6% | 5.8% |
| Tax rate | 13.7% | 16.9% |
| Debt/Equity ratio | 0.08 | 0.08 |
| After-tax WACC | 8.0% | 11.5% |
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 | $96 | $24,006M | 66.9% |
| 10-Year Growth | $103 | $25,745M | 45.1% |
| 5-Year EBITDA | $149 | $36,674M | 78.3% |
| 10-Year EBITDA | $142 | $34,940M | 59.5% |
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 | $667M |
| Discount Rate (WACC) | 11.5% - 8.0% |
| Enterprise Value | $5,794M - $8,347M |
| Net Debt | $1,101M |
| Equity Value | $4,693M - $7,246M |
| Outstanding Shares | 239M |
| Fair Value | $20 - $30 |
| Selected Fair Value | $25.02 |
| Metric | Value |
|---|---|
| Market Capitalization | $17388M |
| Enterprise Value | $18489M |
| Trailing P/E | 73.03 |
| Forward P/E | 9.90 |
| Trailing EV/EBITDA | 17.30 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.08 |
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% | $30.99 |
| Discounted Cash Flow (5Y) | 25% | $24.00 |
| Dividend Discount Model (Multi-Stage) | 20% | $12.82 |
| Dividend Discount Model (Stable) | 15% | $1.45 |
| Earnings Power Value | 10% | $2.50 |
| Weighted Average | 100% | $71.76 |
Based on our comprehensive valuation analysis, Trimble Inc's weighted average intrinsic value is $71.76, which is approximately 1.5% below the current market price of $72.88.
Key investment considerations:
Given these factors, we believe Trimble Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.