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DCF valuation

What is Innospec Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Innospec Inc.'s reported free cash flow gives $89.08 per share. The share price was $98.72 on September 25, 2026, 11% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$88M
Average free cash flow, last 5 years
$94.5M
Cash
$250.2M
balance sheet of June 30, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
24,993,000
Revenue growth per year, last 5 years
8.3%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear3.5%3.0%2.0%10.0%$59.27-40%
Base8.5%5.5%2.5%9.0%$89.08-10%
Bull13.5%8.5%3.0%8.0%$148.53+50%

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%$111.38$118.22$126.59$137.04$150.48
8.0%$94.71$99.15$104.40$110.69$118.38
9.0%$82.55$85.58$89.08$93.17$97.99
10.0%$73.29$75.45$77.89$80.69$83.91
11.0%$66.02$67.60$69.37$71.36$73.61

Where the presets come from

Base: years 1 to 5 grow at Innospec Inc.'s revenue growth rate over the last 5 fiscal years (8.3% 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

Innospec Inc. company page