What is Toro Co worth?
With the base-case assumptions below, a discounted cash flow model on Toro Co's reported free cash flow gives $105.40 per share. The share price was $97.15 on September 25, 2026, 8% 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 | 1.0% | 10.0% | $61.91 | -36% |
| Base | 6.0% | 9.0% | $105.40 | +8% |
| Bull | 11.0% | 8.0% | $186.58 | +92% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $136.71 | $146.27 | $157.95 | $172.55 | $191.32 |
| 8.0% | $113.35 | $119.54 | $126.87 | $135.66 | $146.40 |
| 9.0% | $96.27 | $100.51 | $105.40 | $111.10 | $117.84 |
| 10.0% | $83.26 | $86.28 | $89.69 | $93.59 | $98.10 |
| 11.0% | $73.03 | $75.24 | $77.71 | $80.49 | $83.64 |
Where the presets come from
Base: years 1 to 5 grow at Toro Co's revenue growth rate over the last 5 fiscal years (5.9% 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