Snap-On Incorporated DCF Stock Analysis.
Here’s my assumptions:
Risk Free Rate (10 Years Interest Rate Swap): 4.13%
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): 2.5%
Historical Data
Revenue growth in the last 10 years (CAGR): 3.10%
Earnings growth in the last 10 years (CAGR): 8.11%
Unlevered Free Cash Flow growth in the last 10 years (CAGR): 5.61%
Future Assumptions
End of Year FCF growth: 5%
Growth until end of 2026: 5%
Growth until end of 2034: 4%
Perpetual growth: 3%
Net Debt: -0.233B
Stock Appreciation Rights Value Assumption: $0.049B
Outstanding Stock Options Present Value Assumption: $0.359B
Assumptions used for the Black & Scholes model:
- Stock Price: $366
- Strike Price: $190.7
- Time to expiration: 5.2 years
- Risk Free Rate: 4.13%
- Volatility: 24%
Restricted Stock Units Present Value Assumption: $0.067B
Stock Valuation based on these assumptions: $79
Last update 02/201/2026
$15.00 / month
Excel Spreadsheet Access
By subscribing to the Premium content you’ll access to the same Excel models I use to make valuations. You’ll be able to… Read more
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 Snap-On Incorporated (SNA) and I don’t plan to add a position in the coming days.