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DCF valuation

What is Douglas Dynamics, Inc worth?

With the base-case assumptions below, a discounted cash flow model on Douglas Dynamics, Inc's reported free cash flow gives $53.76 per share. The share price was $39.74 on September 25, 2026, 26% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$63.9M
Average free cash flow, last 5 years
$35.2M
Cash
$1.9M
balance sheet of June 30, 2026
Debt
$7.4M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
23,620,906
Revenue growth per year, last 5 years
6.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear1.5%2.0%2.0%10.0%$33.51-16%
Base6.5%4.5%2.5%9.0%$53.76+35%
Bull11.5%7.5%3.0%8.0%$94.12+137%

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%$68.71$73.27$78.85$85.83$94.80
8.0%$57.55$60.51$64.01$68.21$73.34
9.0%$49.40$51.42$53.76$56.48$59.70
10.0%$43.18$44.62$46.26$48.12$50.27
11.0%$38.30$39.36$40.53$41.86$43.37

Where the presets come from

Base: years 1 to 5 grow at Douglas Dynamics, Inc's revenue growth rate over the last 5 fiscal years (6.4% 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

Douglas Dynamics, Inc company page