DCF Studio

    STE · NYQ · Healthcare

    STERIS plc

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 128.66

    Market price

    USD 233.35

    Implied upside

    -44.9%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-03-31

    Value Per Share

    Perpetuity growth
    USD 128.66-44.9%
    Exit multiple
    USD 242.99+4.1%
    Market price
    USD 233.35

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn1bnFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
    Nominal FCFFDiscounted to todayUSD
    LineFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36CAGR
    RevenueUSD 6.4bnUSD 6.8bnUSD 7.2bnUSD 7.6bnUSD 8.0bnUSD 8.4bnUSD 8.7bnUSD 9.1bnUSD 9.3bnUSD 9.6bn+4.6%
    EBITUSD 1.1bnUSD 1.2bnUSD 1.3bnUSD 1.3bnUSD 1.4bnUSD 1.5bnUSD 1.5bnUSD 1.6bnUSD 1.6bnUSD 1.7bn+4.6%
    NOPATUSD 887.7mUSD 947.4mUSD 1.0bnUSD 1.1bnUSD 1.1bnUSD 1.2bnUSD 1.2bnUSD 1.3bnUSD 1.3bnUSD 1.3bn+4.6%
    Add depreciation & amortisationUSD 639.6mUSD 682.6mUSD 724.9mUSD 766.0mUSD 805.4mUSD 842.5mUSD 877.0mUSD 908.1mUSD 935.6mUSD 959.0m+4.6%
    Less capital expenditureUSD -446.3mUSD -530.8mUSD -621.6mUSD -718.0mUSD -819.2mUSD -924.2mUSD -1.0bnUSD -1.1bnUSD -1.3bnUSD -1.4bn+13.2%
    Capex, % of revenue7.0%7.8%8.6%9.4%10.2%11.0%11.8%12.6%13.4%14.2%-
    Less increase in working capitalUSD -113.5mUSD -109.8mUSD -108.0mUSD -104.9mUSD -100.5mUSD -94.8mUSD -87.9mUSD -79.6mUSD -70.2mUSD -59.7m-6.9%
    Free cashflow to firmUSD 967.5mUSD 989.4mUSD 1.0bnUSD 1.0bnUSD 1.0bnUSD 992.8mUSD 974.2mUSD 947.7mUSD 913.6mUSD 872.1m-1.1%
    Discount factor0.96080.88680.81860.75560.69750.64380.59430.54860.50640.4674-
    Present valueUSD 929.6mUSD 877.4mUSD 819.8mUSD 760.4mUSD 699.9mUSD 639.2mUSD 579.0mUSD 519.9mUSD 462.6mUSD 407.6m-
    Present Value Of The ForecastUSD 6.7bn

    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
    Beta0.904Reported 0.856, pulled toward 1.0 (Blume)
    Cost of equity8.72%Risk-free + beta x equity risk premium
    Cost of debt5.29%Risk-free + 40bp, the spread for a AAA rating at 18.2x interest cover. Book interest / average debt was lower, at 2.8%.
    Market capitalisationUSD 22.8bn91.6% of capital
    Total debtUSD 2.1bn8.4% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC8.33%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 128.66

    53% of EV

    Forecast FCFF, final year
    USD 872.1m
    Capex at depreciation, working capital in reinvestment
    USD 1.3bn
    Less reinvestment at g/ROIC (30.0% of NOPAT)
    USD -399.2m
    Capitalised
    USD 931.8m
    ROIC (WACC floor)
    8.3%
    Terminal value, undiscounted
    USD 16.4bn
    Terminal value, discounted
    USD 7.7bn
    Enterprise value
    USD 14.3bn
    Less net debt
    USD 1.6bn
    Equity value
    USD 12.7bn

    Exit at 15.3x EBITDA

    Value per shareUSD 242.99

    74% of EV

    Terminal value, undiscounted
    USD 40.5bn
    Terminal value, discounted
    USD 18.9bn
    Enterprise value
    USD 25.6bn
    Less net debt
    USD 1.6bn
    Equity value
    USD 24.0bn

    Spread between methods: 62%.

    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%
    6.33%189.63191.48194.35198.70205.31
    7.33%155.38154.37153.56153.01152.82
    8.33%132.20130.43128.66126.89125.12
    9.33%116.06114.56113.06111.57110.07
    10.33%103.07101.79100.5199.2397.95

    Outlined: this model. Green text: above today's price of 233.35. 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 year9.4%4.9%12.4%
    EBIT margin18.6%17.6%30.5%
    Discount rate-8.3%5.7%
    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.