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DCF valuation

What is Embecta Corp. worth?

With the base-case assumptions below, a discounted cash flow model on Embecta Corp.'s reported free cash flow gives $21.37 per share. The share price was $5.90 on September 25, 2026, 72% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$182.4M
Average free cash flow, last 5 years
$210.3M
Cash
$214.7M
balance sheet of June 30, 2026
Debt
$1.46B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
58,915,000
Revenue growth per year, last 5 years
-0.1%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-5.0%-1.5%2.0%10.0%$5.46-7%
Base-0.0%1.5%2.5%9.0%$21.37+262%
Bull5.0%4.0%3.0%8.0%$51.08+766%

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%$32.38$35.68$39.71$44.75$51.22
8.0%$24.21$26.35$28.88$31.91$35.62
9.0%$18.22$19.68$21.37$23.34$25.67
10.0%$13.64$14.68$15.86$17.20$18.76
11.0%$10.02$10.78$11.63$12.59$13.68

Where the presets come from

Base: years 1 to 5 grow at Embecta Corp.'s revenue growth rate over the last 5 fiscal years (-0.1% 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

Embecta Corp. company page