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DCF valuation

What is Methode Electronics Inc worth?

With the base-case assumptions below, a discounted cash flow model on Methode Electronics Inc's reported free cash flow gives -$0.01 per share. The share price was $14.51 on September 25, 2026, 185,807% below that value.

Inputs from the filings

Free cash flow, fiscal 2026
$15.6M
Average free cash flow, last 5 years
$29.9M
Cash
$116.2M
balance sheet of August 1, 2026
Debt
$310.5M
balance sheet of August 1, 2026
Diluted shares, fiscal 2026
35,521,615
Revenue growth per year, last 5 years
-1.3%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-6.5%-2.0%2.0%10.0%-$1.99-114%
Base-1.5%0.5%2.5%9.0%-$0.01-100%
Bull3.5%3.5%3.0%8.0%$3.94-73%

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%$1.38$1.79$2.30$2.93$3.74
8.0%$0.35$0.62$0.94$1.32$1.78
9.0%-$0.40-$0.22-$0.01$0.24$0.53
10.0%-$0.98-$0.85-$0.70-$0.53-$0.34
11.0%-$1.44-$1.34-$1.23-$1.11-$0.98

Where the presets come from

Base: years 1 to 5 grow at Methode Electronics Inc's revenue growth rate over the last 5 fiscal years (-1.3% 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

Methode Electronics Inc company page