DCF Studio

    RVTY · NYQ · Healthcare

    Revvity, Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 65.06

    Market price

    USD 151.60

    Implied upside

    -57.1%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    Current EV/EBITDA of 25.5x sits outside a defensible 3-20x band, so the exit multiple is capped at 20.0x. A multiple that far out usually means EBITDA is the wrong denominator for this business.

    Value Per Share

    Perpetuity growth
    USD 65.06-57.1%
    Exit multiple
    USD 112.06-26.1%
    Market price
    USD 151.60

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0m363m727mFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 2.9bnUSD 3.0bnUSD 3.2bnUSD 3.3bnUSD 3.5bnUSD 3.6bnUSD 3.7bnUSD 3.8bnUSD 3.9bnUSD 4.0bn+4.0%
    EBITUSD 416.6mUSD 439.3mUSD 461.6mUSD 483.3mUSD 504.3mUSD 524.3mUSD 543.2mUSD 560.8mUSD 576.9mUSD 591.3m+4.0%
    NOPATUSD 372.8mUSD 393.1mUSD 413.0mUSD 432.5mUSD 451.2mUSD 469.2mUSD 486.1mUSD 501.8mUSD 516.2mUSD 529.1m+4.0%
    Add depreciation & amortisationUSD 415.8mUSD 438.5mUSD 460.7mUSD 482.4mUSD 503.3mUSD 523.3mUSD 542.2mUSD 559.7mUSD 575.7mUSD 590.1m+4.0%
    Less capital expenditureUSD -80.3mUSD -105.9mUSD -133.6mUSD -163.2mUSD -194.7mUSD -227.8mUSD -262.2mUSD -297.8mUSD -334.2mUSD -371.2m+18.5%
    Capex, % of revenue2.8%3.5%4.2%4.9%5.6%6.3%7.1%7.8%8.5%9.2%-
    Less increase in working capitalUSD 1.1mUSD -47.6mUSD -46.8mUSD -45.6mUSD -44.0mUSD -42.1mUSD -39.7mUSD -36.9mUSD -33.8mUSD -30.3m-
    Free cashflow to firmUSD 709.4mUSD 678.0mUSD 693.3mUSD 706.0mUSD 715.8mUSD 722.6mUSD 726.3mUSD 726.7mUSD 723.9mUSD 717.8m+0.1%
    Discount factor0.95930.88280.81240.74760.68800.63310.58260.53610.49340.4540-
    Present valueUSD 680.6mUSD 598.5mUSD 563.2mUSD 527.8mUSD 492.5mUSD 457.5mUSD 423.1mUSD 389.6mUSD 357.2mUSD 325.9m-
    Present Value Of The ForecastUSD 4.8bn

    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
    Beta1.058Reported 1.086, pulled toward 1.0 (Blume)
    Cost of equity9.37%Risk-free + beta x equity risk premium
    Cost of debt5.78%Risk-free + 89bp, the spread for a A- rating at 3.9x interest cover. Book interest / average debt was lower, at 2.7%.
    Market capitalisationUSD 16.9bn83.3% of capital
    Total debtUSD 3.4bn16.7% of capital, book value as a proxy
    Tax rate10.5%Effective, capped at statutory
    WACC8.67%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 65.06

    52% of EV

    Forecast FCFF, final year
    USD 717.8m
    Capex at depreciation, working capital in reinvestment
    USD 977.3m
    Less reinvestment at g/ROIC (28.8% of NOPAT)
    USD -281.9m
    Capitalised
    USD 695.4m
    ROIC (WACC floor)
    8.7%
    Terminal value, undiscounted
    USD 11.6bn
    Terminal value, discounted
    USD 5.2bn
    Enterprise value
    USD 10.1bn
    Less net debt
    USD 2.5bn
    Equity value
    USD 7.6bn

    Exit at 20.0x EBITDA

    Value per shareUSD 112.06

    69% of EV

    Terminal value, undiscounted
    USD 23.6bn
    Terminal value, discounted
    USD 10.7bn
    Enterprise value
    USD 15.5bn
    Less net debt
    USD 2.5bn
    Equity value
    USD 13.1bn

    Spread between methods: 53%.

    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%
    6.67%94.3192.7891.2589.7388.20
    7.67%78.9477.6976.4475.1873.93
    8.67%67.1666.1165.0664.0162.96
    9.67%57.8356.9456.0555.1654.27
    10.67%50.2849.5148.7547.9847.22

    Outlined: this model. Green text: above today's price of 151.60. 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 year-4.8%3.5%12.8%
    EBIT margin22.4%14.6%41.6%
    Discount rate-8.7%4.4%
    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.