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DCF valuation

What is Emergent BioSolutions Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Emergent BioSolutions Inc.'s reported free cash flow gives $20.21 per share. The share price was $6.79 on September 25, 2026, 66% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$156.8M
Average free cash flow, last 5 years
-$23.8M
Cash
$139.7M
balance sheet of June 30, 2026
Debt
$589.7M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
56,700,000
Revenue growth per year, last 5 years
-14.0%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-10.0%-4.0%2.0%10.0%$9.92+46%
Base-5.0%-1.0%2.5%9.0%$20.21+198%
Bull0.0%1.5%3.0%8.0%$39.37+480%

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%$27.05$29.06$31.52$34.59$38.55
8.0%$22.00$23.31$24.85$26.70$28.96
9.0%$18.28$19.18$20.21$21.41$22.83
10.0%$15.43$16.06$16.78$17.60$18.55
11.0%$13.16$13.63$14.15$14.73$15.40

Where the presets come from

Base: years 1 to 5 grow at Emergent BioSolutions Inc.'s revenue growth rate over the last 5 fiscal years (-14.0% 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

Emergent BioSolutions Inc. company page