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Stocks EML DCF valuation

DCF valuation

What is Eastern Co worth?

With the base-case assumptions below, a discounted cash flow model on Eastern Co's reported free cash flow gives $6.64 per share. The share price was $24.10 on September 25, 2026, 263% above that value.

Inputs from the filings

Free cash flow, fiscal 2026
$4.9M
Cash
$15.1M
balance sheet of July 4, 2026
Debt
$41.7M
balance sheet of July 4, 2026
Diluted shares, fiscal 2026
6,100,327
Revenue growth per year, last 4 years
0.2%

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%$2.52-90%
Base0.0%1.5%2.5%9.0%$6.64-72%
Bull5.0%4.0%3.0%8.0%$14.34-40%

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%$9.49$10.35$11.39$12.70$14.38
8.0%$7.38$7.93$8.59$9.37$10.33
9.0%$5.82$6.20$6.64$7.15$7.75
10.0%$4.64$4.91$5.21$5.56$5.96
11.0%$3.70$3.90$4.12$4.37$4.65

Where the presets come from

Base: years 1 to 5 grow at Eastern Co's revenue growth rate over the last 4 fiscal years (0.2% 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

Eastern Co company page