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DCF valuation

What is Southland Holdings, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Southland Holdings, Inc.'s reported free cash flow gives -$0.78 per share. The share price was $0.66 on September 25, 2026, 184% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$12.7M
Average free cash flow, last 5 years
-$38.8M
Cash
$34.9M
balance sheet of June 30, 2026
Debt
$206.8M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
54,049,705
Revenue growth per year, last 4 years
-11.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-10.0%-4.0%2.0%10.0%-$1.66-352%
Base-5.0%-1.0%2.5%9.0%-$0.78-219%
Bull0.0%1.5%3.0%8.0%$0.85+29%

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%-$0.20-$0.03$0.18$0.44$0.78
8.0%-$0.63-$0.52-$0.39-$0.23-$0.04
9.0%-$0.95-$0.87-$0.78-$0.68-$0.56
10.0%-$1.19-$1.14-$1.07-$1.00-$0.92
11.0%-$1.38-$1.34-$1.30-$1.25-$1.19

Where the presets come from

Base: years 1 to 5 grow at Southland Holdings, Inc.'s revenue growth rate over the last 4 fiscal years (-11.9% 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

Southland Holdings, Inc. company page