What is Root, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Root, Inc.'s reported free cash flow gives $417.22 per share. The share price was $47.40 on September 25, 2026, 89% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 10.0% | 10.0% | $260.66 | +450% |
| Base | 15.0% | 9.0% | $417.22 | +780% |
| Bull | 20.0% | 8.0% | $708.74 | +1,395% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $535.75 | $572.71 | $617.89 | $674.35 | $746.95 |
| 8.0% | $446.71 | $470.68 | $499.00 | $532.99 | $574.54 |
| 9.0% | $381.92 | $398.31 | $417.22 | $439.28 | $465.35 |
| 10.0% | $332.80 | $344.45 | $357.66 | $372.75 | $390.17 |
| 11.0% | $294.36 | $302.90 | $312.45 | $323.19 | $335.37 |
Where the presets come from
Base: years 1 to 5 grow at Root, Inc.'s revenue growth rate over the last 5 fiscal years (34.3% 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