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DCF valuation

What is Kadant Inc worth?

With the base-case assumptions below, a discounted cash flow model on Kadant Inc's reported free cash flow gives $298.57 per share. The share price was $273.89 on September 25, 2026, 8% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$154.3M
Average free cash flow, last 5 years
$129.3M
Cash
$134.5M
balance sheet of July 4, 2026
Debt
$507.5M
balance sheet of July 4, 2026
Diluted shares, fiscal 2025
11,794,000
Revenue growth per year, last 5 years
10.6%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear5.5%4.0%2.0%10.0%$173.43-37%
Base10.5%6.5%2.5%9.0%$298.57+9%
Bull15.5%9.5%3.0%8.0%$548.01+100%

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%$393.24$422.44$458.13$502.75$560.10
8.0%$322.37$341.30$363.68$390.54$423.36
9.0%$270.69$283.63$298.57$316.00$336.60
10.0%$231.40$240.61$251.04$262.97$276.73
11.0%$200.59$207.34$214.88$223.37$232.99

Where the presets come from

Base: years 1 to 5 grow at Kadant Inc's revenue growth rate over the last 5 fiscal years (10.6% 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

Kadant Inc company page