Revvity, Inc.RVTYNYSE

Overview Intelligence Charts News Fundamentals Key Metrics TTM Financials Earnings Growth Rating Analysts Institutional Peers Historical

DCF Valuation

DCF Valuation Summary

Strong Buy

Fair Value: $162.92 per share(market-calibrated)

+70.4%

Upside to Fair Value

Current

$95.59

Pure Model

$172.49

Fair Value

$162.92

Bull Case

$221.32

Bear Case

$131.49

Market Reality Check

Model Terminal Growth

3.00%

Market-Implied Growth

0.50%

Calibrated Growth

2.13%

Fair value uses 65% model / 35% market-implied terminal growth. Pure model: $172.49.

What's Driving This Ratingfor RVTY

✓

CapEx already efficient

CapEx at 2.89% of revenue is already at or below sector maintenance level. No normalization needed — cash conversion is already strong.

↑

Margin expansion modeled

Current EBIT margin is 18.95% — below the sector mature average of 20.00%. Model expands margins as the business scales and operating leverage kicks in. Year 10 EBIT reaches $886M (19.66% margin).

→

Moderate revenue growth

Analyst consensus projects 4.35% revenue growth, fading to 3.00% by Year 10. Revenue reaches $4.5B (vs $2.9B today).

🎯

Market pricing in lower growth than model

The market implies only 0.50% perpetual growth — 250bps below the model's 3.00%. This suggests the market sees headwinds or risks not in the model.

✓

Strong cash flow conversion

Year 10 FCF/EBITDA conversion of 84.05% indicates efficient cash generation. FCF reaches $1.3B by Year 10 (28.31% FCF margin).

Weighted Average Cost of Capital (WACC)

Cost of Equity (CAPM)

Risk-Free Rate (Rf)4.50%

Beta (β)1.09

Market Risk Premium4.50%

*Using current implied premium (4.5% per Damodaran 2026), not historical (6.5%)

Cost of Equity (Re)9.40%

Cost of Debt

Pre-tax Cost of Debt2.81%

Tax Rate9.62%

After-tax Cost of Debt2.54%

Equity Weight (E/V)75.48%

Debt Weight (D/V)24.52%

WACC Calculation

WACC = (E/V × Re) + (D/V × Rd × (1-Tc))

WACC = (75.48% × 9.40%) + (24.52% × 2.54%)

= 7.72%

10-Year Free Cash Flow Projections(showing years 1, 3, 5, 7, 10)

Year	Year 1	Year 3	Year 5	Year 7	Year 10
Revenue	$3.0B	$3.3B	$3.7B	$4.1B	$4.5B
EBIT	$565M	$625M	$698M	$784M	$886M
Tax	$54M	$60M	$67M	$75M	$85M
NOPAT	$511M	$565M	$631M	$709M	$800M
+ Depreciation	$418M	$462M	$517M	$569M	$632M
- Capex	$86M	$95M	$107M	$117M	$130M
- Δ NWC	$25M	$34M	$41M	$37M	$27M
Free Cash Flow	$817M	$898M	$1.0B	$1.1B	$1.3B
Discount Factor	0.928	0.800	0.690	0.594	0.476
Present Value	$759M	$718M	$690M	$668M	$607M

FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital

Terminal Value Calculation

Perpetuity Growth Method

Year 10 FCF$1.3B

Terminal Growth Rate3.00%

WACC7.72%

TV = FCF₁₀ × (1+g) / (WACC-g)

Terminal Value$27.9B

PV of Terminal Value$13.2B

Exit Multiple Method

Year 10 EBITDA$1.5B

Exit Multiple (EV/EBITDA)24.0x

TV = EBITDA₁₀ × Exit Multiple

Terminal Value$36.4B

PV of Terminal Value$17.3B

Valuation Summary

Perpetuity Growth Method

PV of Projected FCFs$6.8B

PV of Terminal Value$13.2B

Enterprise Value$20.1B

(-) Net Debt$2.6B

Equity Value$17.5B

Shares Outstanding113M

Price per Share$154.49

Exit Multiple Method

PV of Projected FCFs$6.8B

PV of Terminal Value$17.3B

Enterprise Value$24.2B

(-) Net Debt$2.6B

Equity Value$21.6B

Shares Outstanding113M

Price per Share$190.49

Pure Model Fair Value

$172.49

Average of perpetuity growth and exit multiple methods (before market calibration)

Sensitivity AnalysisPrice per Share

WACC ↓ / Growth →	2.00%	2.50%	3.00%	3.50%	4.00%
5.72%	$224.85	$239.13	$258.67	$287.01	$296.37
6.72%	$188.15	$196.04	$206.05	$219.17	$237.12
7.72%	$161.79	$166.63	$172.49	$179.74	$188.95
8.72%	$141.46	$144.64	$148.37	$152.82	$158.22
9.72%	$125.05	$127.25	$129.77	$132.69	$136.13

How to read: This table shows how the valuation changes with different WACC (discount rate) and terminal growth rate assumptions. Green = undervalued, Red = overvalued.

Scenario Analysis

Bear Case

$131.49

37.6% vs current

• -25% vs analyst consensus
• Terminal growth: 2.5%
• Beta: 1.36

Base Case

$172.49

80.4% vs current

• Analyst consensus
• Terminal growth: 3.0%
• Beta: 1.09

Bull Case

$221.32

131.5% vs current

• +25% vs analyst consensus
• Terminal growth: 3.5%
• Beta: 0.93

Key Assumptions & Drivers✓ Using Analyst Consensus Estimates• Healthcare Sector

Growth Assumptions (Select Years)

Year 1 Revenue Growth4.35%

Year 3 Revenue Growth5.38%

Year 5 Revenue Growth5.79%

Year 7 Revenue Growth4.67%

Year 10 Revenue Growth3.00%

Terminal Growth Rate3.00%

Margin & Efficiency

Current EBIT Margin18.95%

Terminal EBIT Margin20.00%

Tax Rate9.62%

Historical Capex / Rev2.89%

NWC / Revenue20.22%

Key Drivers: Revenue growth, operating margin expansion, capex efficiency, and working capital management are the primary drivers of cash flow generation. Terminal value assumptions significantly impact final valuation.

Institutional-Grade Methodology

Actual Company Data: Revenue, EBIT, Capex, NWC, Tax Rate, Interest Expense, Beta

Market Assumptions: Risk-free: 4.5% (10Y), MRP: 4.5% (Damodaran 2026), Exit: 24x EV/EBITDA (Healthcare sector)

This DCF model is for informational purposes only. Projections are based on assumptions that may not materialize. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.

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