Invesaro

Stocks SGU DCF valuation

DCF valuation

What is Star Group, L.P. worth?

With the base-case assumptions below, a discounted cash flow model on Star Group, L.P.'s reported free cash flow gives $24.15 per share. The share price was $12.83 on September 25, 2026, 47% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$56M
Average free cash flow, last 5 years
$68M
Cash
$27M
balance sheet of June 30, 2026
Debt
$172.6M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
34,276,000
Revenue growth per year, last 5 years
4.0%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-1.0%0.5%2.0%10.0%$13.32+4%
Base4.0%3.5%2.5%9.0%$24.15+88%
Bull9.0%6.0%3.0%8.0%$44.37+246%

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%$31.85$34.18$37.04$40.61$45.20
8.0%$26.11$27.63$29.42$31.57$34.19
9.0%$21.92$22.96$24.15$25.54$27.19
10.0%$18.72$19.46$20.29$21.25$22.35
11.0%$16.20$16.74$17.34$18.02$18.79

Where the presets come from

Base: years 1 to 5 grow at Star Group, L.P.'s revenue growth rate over the last 5 fiscal years (4.0% 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

Star Group, L.P. company page