Cabot Corp. logo CBT - Cabot Corp.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 0
BUY 7
HOLD 7
SELL 1
STRONG
SELL 0
| PRICE TARGET: $89.75 DETAILS
HIGH: $98.00
LOW: $85.00
MEDIAN: $88.00
CONSENSUS: $89.75
UPSIDE: 2.17%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 3.4% above fair value
Current Price $87.84
Bear Case $75.93 13.6% downside ($75.93 - $87.84) / $87.84 = -13.6% 3% stage 1 growth, 11% discount
Fair Value $84.93 3.3% downside ($84.93 - $87.84) / $87.84 = -3.3% 4% stage 1 growth, 11% discount
Bull Case $95.08 8.2% upside ($95.08 - $87.84) / $87.84 = 8.2% 6% stage 1 growth, 11% discount

Adjust Assumptions

4.2%
11.0%
3.0%

Key Value Driver

FCF growth rate (4% base case)

Terminal Value % of EV 34%
Implied Market Multiple 14.7x
Market is pricing in (growth) 4.8% vs our 4.2% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $89.75 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $84.93 per share.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions