Invesaro

Stocks EACO DCF valuation

DCF valuation

What is Eaco Corp worth?

With the base-case assumptions below, a discounted cash flow model on Eaco Corp's reported free cash flow gives $96.68 per share. The share price was $130.00 on September 25, 2026, 34% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$15.9M
Average free cash flow, last 5 years
$6.6M
Cash
$758K
balance sheet of May 31, 2026
Debt
$4.1M
balance sheet of May 31, 2026
Diluted shares, fiscal 2025
4,901,590
Revenue growth per year, last 5 years
13.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear8.5%5.5%2.0%10.0%$59.55-54%
Base13.5%8.0%2.5%9.0%$96.68-26%
Bull18.5%11.0%3.0%8.0%$170.66+31%

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%$125.24$134.11$144.96$158.51$175.93
8.0%$103.81$109.57$116.37$124.52$134.49
9.0%$88.21$92.14$96.68$101.98$108.23
10.0%$76.37$79.16$82.33$85.96$90.14
11.0%$67.09$69.14$71.43$74.01$76.93

Where the presets come from

Base: years 1 to 5 grow at Eaco Corp's revenue growth rate over the last 5 fiscal years (13.7% 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

Eaco Corp company page