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DCF valuation

What is Churchill Downs Inc worth?

With the base-case assumptions below, a discounted cash flow model on Churchill Downs Inc's reported free cash flow gives $258.18 per share. The share price was $79.77 on September 25, 2026, 69% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$699.6M
Average free cash flow, last 5 years
$559.2M
Cash
$196M
balance sheet of June 30, 2026
Debt
$4.77B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
71,800,000
Revenue growth per year, last 5 years
22.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$131.86+65%
Base15.0%9.0%2.5%9.0%$258.18+224%
Bull20.0%11.5%3.0%8.0%$493.40+519%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$353.82$383.64$420.09$465.65$524.23
8.0%$281.97$301.31$324.17$351.60$385.12
9.0%$229.70$242.92$258.18$275.98$297.02
10.0%$190.06$199.47$210.12$222.30$236.35
11.0%$159.05$165.94$173.65$182.31$192.14

Where the presets come from

Base: years 1 to 5 grow at Churchill Downs Inc's revenue growth rate over the last 5 fiscal years (22.7% 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

Churchill Downs Inc company page