Lamb Weston Holdings DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.02%

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): 6%

Last 24 Months Beta: 1

Historical Data

Revenue growth in the last 10 years (CAGR): 8.24%

Earnings growth in the last 10 years (CAGR): 2.27%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): -0.33%

Future Assumptions

End of Year FCF growth: 3%

Growth until end of 2026: 3%

Growth until end of 2034: 3%

Perpetual growth: 2.5%

Net Debt: 3.862B

Outstanding Stock Options Present Value Assumption: $0.006B

Assumptions used for the Black & Scholes model:

• Stock Price: $39.8
• Strike Price: $69.72
• Time to expiration: 5.9 years
• Risk Free Rate: 4.02%
• Volatility: 36%

Restricted Stock Units Present Value Assumption: $0.495B

Stock Valuation based on these assumptions: $76

Last update 03/20/2026

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 Lamb Weston Holdings (LW) and I don’t plan to add a position in the coming days.