FSTR (L.B. Foster Co) Intrinsic Value: DCF (FCF Based): $42.83 (As of Aug. 03, 2026) — 6199% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FSTR L.B. Foster Co FSTR
70 GF Score
Price $41.13
GF Value $25.01
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is L.B. Foster Co Intrinsic Value: DCF (FCF Based)?

L.B. Foster Co FSTR -0.05% 70 Intrinsic Value: DCF (FCF Based) is $42.83 as of Aug. 03, 2026, which is 6199% above its 10-year median of 0.68. GuruFocus rates FSTR with a GF Score™ of 70/100 and a GF Value™ of $25.01 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 129 Transportation companies, L.B. Foster Co ranks worse than 775193.02% on this metric.

As of today (2026-08-03), L.B. Foster Co's intrinsic value calculated from the Discounted Cash Flow model is $42.83.

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.

L.B. Foster Co's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (FCF Based) using Discounted Cash Flow model for L.B. Foster Co is 3.97%.

The industry rank for L.B. Foster Co's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

FSTR's Price-to-DCF (FCF Based) is not ranked *
in the Transportation industry.
Industry Median: 0.98
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

L.B. Foster Co  (NAS:FSTR) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about the DCF model:

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.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


L.B. Foster Co Intrinsic Value: DCF (FCF Based) Related Terms


L.B. Foster Co Intrinsic Value: DCF (FCF Based) Historical Data

* Premium members only.

The historical data trend for L.B. Foster 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.

L.B. Foster Co Intrinsic Value: DCF (FCF Based) Chart

L.B. Foster Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Intrinsic Value: DCF (FCF Based)
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L.B. Foster Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Intrinsic Value: DCF (FCF Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

FSTR vs RAIL, SWVL, RVSN: Intrinsic Value: DCF (FCF Based) Comparison

For the Railroads subindustry, L.B. Foster 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.


L.B. Foster Co Price-to-DCF (FCF Based) vs Transportation Industry

For the Transportation industry and Industrials sector, L.B. Foster Co's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where L.B. Foster Co's Price-to-DCF (FCF Based) falls into.


FSTR
70GF Score
L.B. Foster Co FSTR
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

L.B. Foster 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 4.69%. 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 = 5%
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.
=> L.B. Foster Co's average Free Cash Flow Growth Rate in the past 3 years was 0.00%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

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 = $3.711.
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.

L.B. Foster Co's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Free Cash Flow per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=3.711*11.5406
=42.83

Margin of Safety (FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(42.83-41.13)/42.83
=3.97 %

* 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 $42.83 mean?
L.B. Foster Co (FSTR) has a Intrinsic Value: DCF (FCF Based) of $42.83 as of Aug. 03, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on L.B. Foster Co and its competitors. This is 6199% above median its historical median of 0.68. Over the past decade, L.B. Foster Co's Intrinsic Value: DCF (FCF Based) has ranged from 0.68 to 0.68. According to the industry distribution chart, L.B. Foster Co ranks #999999 out of 129 companies in the Transportation industry.
Is L.B. Foster Co's Intrinsic Value: DCF (FCF Based) too high?
L.B. Foster Co's current Intrinsic Value: DCF (FCF Based) of $42.83 is 6199% above median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 0.68. The Transportation industry median Intrinsic Value: DCF (FCF Based) is 0.98. L.B. Foster Co's value of $42.83 is 4270.4% above this industry median. Based on the distribution chart, L.B. Foster Co ranks #999999 out of 129 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, L.B. Foster Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does L.B. Foster Co's Intrinsic Value: DCF (FCF Based) compare to RAIL and SWVL?
According to the Transportation industry distribution chart, L.B. Foster Co ranks #999999 out of 129 companies for Intrinsic Value: DCF (FCF Based). This places L.B. Foster Co in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 0.98. L.B. Foster Co's value of $42.83 is 4270.4% above this benchmark. Historically, L.B. Foster Co's own Intrinsic Value: DCF (FCF Based) has ranged from 0.68 to 0.68 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 0.98, L.B. Foster Co has consistently been above the industry average. 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 a Transportation company?
The median Intrinsic Value: DCF (FCF Based) among Transportation companies is 0.98, based on 129 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. L.B. Foster Co's current Intrinsic Value: DCF (FCF Based) of $42.83 is 4270.4% 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 L.B. Foster Co and its competitors. For the Transportation industry, the median Intrinsic Value: DCF (FCF Based) is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L.B. Foster Co's current Intrinsic Value: DCF (FCF Based) is $42.83, which is 6199% above median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L.B. Foster Co stock overvalued right now?
Based on GuruFocus' analysis, L.B. Foster Co (FSTR) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.01, compared to a current price of $41.13 — trading 64.5% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is $42.83, which is 6199% above median its 10-year median of 0.68 and 4270.4% above the Transportation industry median of 0.98. L.B. Foster Co's overall GF Score™ is 70/100 with 4 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 L.B. Foster Co (FSTR), the current Intrinsic Value: DCF (FCF Based) is $42.83 as of Aug. 03, 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 L.B. Foster Co (FSTR) Overvalued in 2026?

Based on GuruFocus' analysis, L.B. Foster Co stock appears to be overvalued. The current stock price of $41.13 is trading 64.5% above its estimated GF Value™ of $25.01. GuruFocus considers L.B. Foster Co to be Significantly Overvalued.

Key valuation signals for FSTR:

  • Intrinsic Value: DCF (FCF Based): $42.83 (6199% above median its 10-year median of 0.68)
  • GF Value™: $25.01 vs. price of $41.13 (64.5% above fair value)
  • GF Score™: 70/100 with 4 warning signs
  • Industry Position: 4270.4% above the Transportation median (#999999 of 129)

No single metric tells the full story. See the FSTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


L.B. Foster Co Business Description

Other Exchanges LB1A:Germany
Address 415 Holiday Drive, Suite 100, Pittsburgh, PA, USA, 15220
L.B. Foster Co is a technology solutions provider of products and services for the rail and infrastructure markets. The company has two reporting segments: Rail, Technologies, and Services (Rail); and Infrastructure Solutions (Infrastructure). Maximum revenue is generated from the Rail segment, which is comprised of several manufacturing and distribution businesses that provide products and services for freight and passenger railroads and industrial companies throughout the world. The Infrastructure segment offers engineered precast concrete solutions, as well as fabricated bridge, protective pipe coating, and pipe threading offerings across North America. Geographically, the company generates maximum revenue from the United States, followed by Canada, the UK, and other markets.
70GF Score

Get the complete analysis for FSTR

Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$41.13
Price
$25.01
GF Value