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Donaldson CoDCI +0.77%92 Intrinsic Value: DCF (FCF Based) is $55.27 as of Sep. 04, 2026. GuruFocus rates DCI with a GF Score™ of 92/100 and a GF Value™ of $83.94 (Fairly Valued). The stock has 3 warning signs investors should review. Among 344 Industrial Products companies, Donaldson Co ranks worse than 54.65% on this metric.
Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.
Donaldson Co Intrinsic Value: DCF (FCF Based) Related Terms
Donaldson Co Intrinsic Value: DCF (FCF Based) Historical Data
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The historical data trend for Donaldson Co's Intrinsic Value: DCF (FCF Based) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Donaldson Co Intrinsic Value: DCF (FCF Based) Chart
For the Specialty Industrial Machinery subindustry, Donaldson Co's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Donaldson Co Price-to-DCF (FCF Based) vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Donaldson Co's Price-to-DCF (FCF Based) distribution charts can be found below:
* The bar in red indicates where Donaldson Co's Price-to-DCF (FCF Based) falls into.
Donaldson Co Intrinsic Value: DCF (FCF Based) Calculation
This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.
Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.
GuruFocus DCF calculator is a two-stage model. The default values are defined as:
1. Discount Rate: d = 11% A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.76%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.
2. Growth Rate in the growth stage: g1 = 9.30%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>
Donaldson Co's average Free Cash Flow Growth Rate in the past
10 years was 9.30%,
which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 9.30%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. Free Cash Flow per Share: fcf = $3.615. However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
Donaldson Co's Intrinsic Value: DCF (FCF Based) for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Intrinsic Value: DCF (FCF Based) of $55.27 mean?
Donaldson Co (DCI) has a Intrinsic Value: DCF (FCF Based) of $55.27 as of Sep. 04, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Donaldson Co and its competitors. According to the industry distribution chart, Donaldson Co ranks #188 out of 344 companies in the Industrial Products industry, placing it in the top 54.7%.
Is Donaldson Co's Intrinsic Value: DCF (FCF Based) too high?
Donaldson Co's current Intrinsic Value: DCF (FCF Based) is $55.27. The Industrial Products industry median Intrinsic Value: DCF (FCF Based) is 1.47. Donaldson Co's value of $55.27 is 3672.7% above this industry median. Based on the distribution chart, Donaldson Co ranks #188 out of 344 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Donaldson Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Donaldson Co's Intrinsic Value: DCF (FCF Based) compare to RRX and GNRC?
According to the Industrial Products industry distribution chart, Donaldson Co ranks #188 out of 344 companies for Intrinsic Value: DCF (FCF Based). This places Donaldson Co in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 1.47. Donaldson Co's value of $55.27 is 3672.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (FCF Based) for an Industrial Products company?
The median Intrinsic Value: DCF (FCF Based) among Industrial Products companies is 1.47, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (FCF Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donaldson Co's current Intrinsic Value: DCF (FCF Based) of $55.27 is 3672.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (FCF Based) mean?
A high Intrinsic Value: DCF (FCF Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Donaldson Co and its competitors. For the Industrial Products industry, the median Intrinsic Value: DCF (FCF Based) is 1.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donaldson Co's current Intrinsic Value: DCF (FCF Based) is $55.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donaldson Co stock overvalued right now?
Based on GuruFocus' analysis, Donaldson Co (DCI) is currently considered Fairly Valued. The stock's GF Value™ is $83.94, compared to a current price of $90.60 — trading 7.9% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is $55.27 and 3672.7% above the Industrial Products industry median of 1.47. Donaldson Co's overall GF Score™ is 92/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (FCF Based) calculated?
Intrinsic Value: DCF (FCF Based) is calculated from a company's financial statements. For Donaldson Co (DCI), the current Intrinsic Value: DCF (FCF Based) is $55.27 as of Sep. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Donaldson Co (DCI) Overvalued in 2026?
Based on GuruFocus' analysis, Donaldson Co stock appears to be overvalued.
The current stock price of $90.60 is trading 7.9% above its estimated GF Value™ of $83.94.
GuruFocus considers Donaldson Co to be Fairly Valued.
Key valuation signals for DCI:
Intrinsic Value: DCF (FCF Based): $55.27
GF Value™: $83.94 vs. price of $90.60 (7.9% above fair value)
Industry Position: 3672.7% above the Industrial Products median (#188 of 344)
No single metric tells the full story. See the DCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Donaldson is a leading manufacturer of filtration systems and replacement parts, including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors. The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.7 billion in revenue in its fiscal 2025.
92GF Score
Get the complete analysis for DCI
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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