Corpay DCF Stock Analysis.
Here’s my assumptions:
Risk Free Rate (10 Years Interest Rate Swap): 4.135%
Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%
Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 5.5%
Historical Data
Revenue growth in the last 10 years (CAGR): 7.37%
Earnings growth in the last 10 years (CAGR): 10.72%
Unlevered Free Cash Flow growth in the last 10 years (CAGR): 5.43%
Future Assumptions
End of Year FCF growth: 5%
Growth until end of 2026: 4%
Growth until end of 2034: 4%
Perpetual growth: 2.5%
Net Debt: -1.251B
Outstanding Stock Options Present Value Assumption: $0.328B
Assumptions used for the Black & Scholes model:
- Stock Price: $320
- Strike Price: $191.97
- Time to expiration: 0.5 years
- Risk Free Rate: 4.135%
- Volatility: 35%
(I tend to shorten the expiration time of options because I expect them to be exercised before the expiration date.)
Restricted Stock Units Present Value Assumption: $0.147B
Stock Valuation based on these assumptions: $377
Last update 01/18/2026
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All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.
I don’t have a position in Corpay (CPAY) and I don’t plan to add a position in the coming days.