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DCF valuation

What is Palomar Holdings, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Palomar Holdings, Inc.'s reported free cash flow gives $483.15 per share. The share price was $123.99 on September 25, 2026, 74% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$409M
Average free cash flow, last 5 years
$208.6M
Cash
$62.7M
balance sheet of June 30, 2026
Debt
$295.8M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
27,485,250
Revenue growth per year, last 5 years
39.1%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$290.23+134%
Base15.0%9.0%2.5%9.0%$483.15+290%
Bull20.0%11.5%3.0%8.0%$842.36+579%

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%$629.21$674.75$730.41$799.99$889.45
8.0%$519.49$549.02$583.92$625.81$677.00
9.0%$439.66$459.85$483.15$510.33$542.46
10.0%$379.12$393.48$409.76$428.36$449.82
11.0%$331.76$342.29$354.05$367.29$382.29

Where the presets come from

Base: years 1 to 5 grow at Palomar Holdings, Inc.'s revenue growth rate over the last 5 fiscal years (39.1% 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

Palomar Holdings, Inc. company page