DCF Studio

    COO · NMS · Healthcare

    The Cooper Companies, Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 38.93

    Market price

    USD 61.30

    Implied upside

    -36.5%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-10-31

    Value Per Share

    Perpetuity growth
    USD 38.93-36.5%
    Exit multiple
    USD 56.23-8.3%
    Market price
    USD 61.30

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0m335m670mFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 4.2bnUSD 4.4bnUSD 4.6bnUSD 4.7bnUSD 4.9bnUSD 5.1bnUSD 5.2bnUSD 5.4bnUSD 5.5bnUSD 5.7bn+3.3%
    EBITUSD 688.6mUSD 716.3mUSD 743.7mUSD 770.7mUSD 797.3mUSD 823.3mUSD 848.5mUSD 873.0mUSD 896.4mUSD 918.9m+3.3%
    NOPATUSD 544.0mUSD 565.8mUSD 587.5mUSD 608.9mUSD 629.9mUSD 650.4mUSD 670.3mUSD 689.6mUSD 708.2mUSD 725.9m+3.3%
    Add depreciation & amortisationUSD 419.1mUSD 435.9mUSD 452.6mUSD 469.0mUSD 485.2mUSD 501.0mUSD 516.4mUSD 531.3mUSD 545.5mUSD 559.2m+3.3%
    Less capital expenditureUSD -401.7mUSD -420.9mUSD -440.3mUSD -459.7mUSD -479.0mUSD -498.2mUSD -517.2mUSD -535.9mUSD -554.2mUSD -572.1m+4.0%
    Capex, % of revenue9.5%9.5%9.6%9.7%9.8%9.8%9.9%10.0%10.0%10.1%-
    Less increase in working capitalUSD -45.7mUSD -53.2mUSD -52.7mUSD -52.0mUSD -51.1mUSD -50.0mUSD -48.6mUSD -47.0mUSD -45.1mUSD -43.1m-0.7%
    Free cashflow to firmUSD 515.7mUSD 527.6mUSD 547.1mUSD 566.2mUSD 585.0mUSD 603.2mUSD 621.0mUSD 638.0mUSD 654.4mUSD 669.9m+3.0%
    Discount factor0.96290.89290.82790.76770.71180.66000.61200.56750.52620.4879-
    Present valueUSD 496.5mUSD 471.1mUSD 452.9mUSD 434.7mUSD 416.4mUSD 398.2mUSD 380.0mUSD 362.1mUSD 344.3mUSD 326.9m-
    Present Value Of The ForecastUSD 4.1bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.878Reported 0.818, pulled toward 1.0 (Blume)
    Cost of equity8.61%Risk-free + beta x equity risk premium
    Cost of debt5.44%Risk-free + 55bp, the spread for a AA rating at 6.8x interest cover. Book interest / average debt was lower, at 3.9%.
    Market capitalisationUSD 11.7bn82.3% of capital
    Total debtUSD 2.5bn17.7% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC7.85%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 38.93

    60% of EV

    Forecast FCFF, final year
    USD 669.9m
    Capex at depreciation, working capital in reinvestment
    USD 956.5m
    Less reinvestment at g/ROIC (31.9% of NOPAT)
    USD -304.8m
    Capitalised
    USD 651.7m
    ROIC (WACC floor)
    7.8%
    Terminal value, undiscounted
    USD 12.5bn
    Terminal value, discounted
    USD 6.1bn
    Enterprise value
    USD 10.2bn
    Less net debt
    USD 2.4bn
    Equity value
    USD 7.8bn

    Exit at 13.3x EBITDA

    Value per shareUSD 56.23

    70% of EV

    Terminal value, undiscounted
    USD 19.6bn
    Terminal value, discounted
    USD 9.6bn
    Enterprise value
    USD 13.6bn
    Less net debt
    USD 2.4bn
    Equity value
    USD 11.2bn

    Spread between methods: 36%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    5.85%59.6558.6057.5556.5055.45
    6.85%48.5547.7146.8646.0145.16
    7.85%40.3239.6238.9238.2337.53
    8.85%33.9933.4032.8132.2331.64
    9.85%28.9728.4727.9727.4726.97

    Outlined: this model. Green text: above today's price of 61.30. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year7.3%3.3%8.1%
    EBIT margin18.1%16.2%24.9%
    Discount rate-7.8%5.6%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.