What is Cabot Corp worth?
With the base-case assumptions below, a discounted cash flow model on Cabot Corp's reported free cash flow gives $137.30 per share. The share price was $78.76 on September 25, 2026, 43% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 2.5% | 10.0% | $79.85 | +1% |
| Base | 7.5% | 9.0% | $137.30 | +74% |
| Bull | 12.5% | 8.0% | $251.85 | +220% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $180.00 | $193.08 | $209.05 | $229.02 | $254.70 |
| 8.0% | $148.11 | $156.59 | $166.61 | $178.63 | $193.32 |
| 9.0% | $124.82 | $130.61 | $137.30 | $145.10 | $154.33 |
| 10.0% | $107.08 | $111.21 | $115.88 | $121.22 | $127.38 |
| 11.0% | $93.15 | $96.17 | $99.55 | $103.35 | $107.65 |
Where the presets come from
Base: years 1 to 5 grow at Cabot Corp's revenue growth rate over the last 5 fiscal years (7.3% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions