Q · NYQ · Technology
Qnity Electronics, Inc.
Also onConsensus Drift
Implied value per share
USD 88.08
Market price
USD 115.37
Implied upside
-23.7%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 5.6bn | USD 6.3bn | USD 7.0bn | USD 7.7bn | USD 8.4bn | USD 9.0bn | USD 9.5bn | USD 10.0bn | USD 10.4bn | USD 10.6bn | +7.3% |
| EBIT | USD 1.1bn | USD 1.2bn | USD 1.4bn | USD 1.5bn | USD 1.6bn | USD 1.8bn | USD 1.9bn | USD 2.0bn | USD 2.0bn | USD 2.1bn | +7.3% |
| NOPAT | USD 914.9m | USD 1.0bn | USD 1.1bn | USD 1.2bn | USD 1.4bn | USD 1.5bn | USD 1.5bn | USD 1.6bn | USD 1.7bn | USD 1.7bn | +7.3% |
| Add depreciation & amortisation | USD 503.2m | USD 564.3m | USD 626.1m | USD 687.0m | USD 745.6m | USD 800.1m | USD 849.1m | USD 890.8m | USD 923.8m | USD 946.9m | +7.3% |
| Less capital expenditure | USD -290.2m | USD -356.5m | USD -429.9m | USD -509.6m | USD -594.1m | USD -681.6m | USD -770.0m | USD -856.9m | USD -939.5m | USD -1.0bn | +14.9% |
| Capex, % of revenue | 5.1% | 5.6% | 6.1% | 6.6% | 7.1% | 7.6% | 8.1% | 8.6% | 9.1% | 9.6% | - |
| Less increase in working capital | USD -132.6m | USD -102.5m | USD -103.6m | USD -102.2m | USD -98.3m | USD -91.6m | USD -82.1m | USD -70.0m | USD -55.4m | USD -38.7m | -12.8% |
| Free cashflow to firm | USD 995.3m | USD 1.1bn | USD 1.2bn | USD 1.3bn | USD 1.4bn | USD 1.5bn | USD 1.5bn | USD 1.6bn | USD 1.6bn | USD 1.6bn | +5.5% |
| Discount factor | 0.9603 | 0.8855 | 0.8166 | 0.7530 | 0.6944 | 0.6403 | 0.5905 | 0.5445 | 0.5021 | 0.4630 | - |
| Present value | USD 955.8m | USD 1.0bn | USD 1.0bn | USD 997.1m | USD 978.2m | USD 948.7m | USD 909.7m | USD 862.2m | USD 807.6m | USD 747.6m | - |
| Present Value Of The Forecast | USD 9.2bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.000 | As reported |
| Cost of equity | 9.12% | Risk-free + beta x equity risk premium |
| Cost of debt | 5.29% | Risk-free + 40bp, the spread for a AAA rating at 15.6x interest cover. Book interest / average debt was lower, at 3.2%. |
| Market capitalisation | USD 24.1bn | 85.7% of capital |
| Total debt | USD 4.0bn | 14.3% of capital, book value as a proxy |
| Tax rate | 17.8% | Effective, capped at statutory |
| WACC | 8.44% | 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%
57% of EV
- Forecast FCFF, final year
- USD 1.6bn
- Capex at depreciation, working capital in reinvestment
- USD 2.2bn
- Less reinvestment at g/ROIC (29.6% of NOPAT)
- USD -652.0m
- Capitalised
- USD 1.5bn
- ROIC (WACC floor)
- 8.4%
- Terminal value, undiscounted
- USD 26.7bn
- Terminal value, discounted
- USD 12.4bn
- Enterprise value
- USD 21.6bn
- Less net debt
- USD 3.1bn
- Equity value
- USD 18.5bn
Exit at 19.6x EBITDA
75% of EV
- Terminal value, undiscounted
- USD 59.6bn
- Terminal value, discounted
- USD 27.6bn
- Enterprise value
- USD 36.8bn
- Less net debt
- USD 3.1bn
- Equity value
- USD 33.7bn
Spread between methods: 58%.
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 6.44% | 127.06 | 125.41 | 123.80 | 122.28 | 120.88 |
| 7.44% | 106.15 | 104.59 | 103.03 | 101.47 | 99.91 |
| 8.44% | 90.68 | 89.38 | 88.08 | 86.78 | 85.48 |
| 9.44% | 78.55 | 77.45 | 76.35 | 75.25 | 74.15 |
| 10.44% | 68.79 | 67.85 | 66.91 | 65.97 | 65.03 |
Outlined: this model. Green text: above today's price of 115.37. 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.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | -0.0% | 8.4% | 11.4% | |
| EBIT margin | 21.7% | 19.7% | 26.2% | |
| Discount rate | - | 8.4% | 6.8% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.