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DCF valuation

What is Powell Industries Inc worth?

With the base-case assumptions below, a discounted cash flow model on Powell Industries Inc's reported free cash flow gives $472.40 per share. The share price was $189.53 on September 25, 2026, 60% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$154.8M
Average free cash flow, last 5 years
$77.4M
Cash
$633.6M
balance sheet of June 30, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
12,167,000
Revenue growth per year, last 5 years
16.3%

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%$307.46+62%
Base15.0%9.0%2.5%9.0%$472.40+149%
Bull20.0%11.5%3.0%8.0%$779.51+311%

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%$597.27$636.21$683.80$743.28$819.77
8.0%$503.46$528.71$558.56$594.37$638.13
9.0%$435.21$452.48$472.40$495.64$523.10
10.0%$383.46$395.74$409.65$425.55$443.90
11.0%$342.96$351.96$362.02$373.34$386.17

Where the presets come from

Base: years 1 to 5 grow at Powell Industries Inc's revenue growth rate over the last 5 fiscal years (16.3% 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

Powell Industries Inc company page