AlphaMadera's AlphaVal page classifies Distribution Solutions Group, Inc. as a Platform & Compounding FCF business and values it using Two-stage FCF DCF, then compares the result to the current market price to flag DSGR as undervalued, fairly valued, or overvalued.

What is Distribution Solutions Group, Inc.'s fair value?

Fair value for DSGR comes from a Two-stage FCF DCF model -- the approach AlphaVal selected for this company's Platform & Compounding FCF classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value DSGR?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. DSGR was classified as Platform & Compounding FCF and is valued using Two-stage FCF DCF, built from DSGR's most recent reported fundamentals.

DSGR - Distribution Solutions Group, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $35.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild

Trading 12.5% above fair value

Current Price $34.75

Bear Case $12.41 64.3% downside ($12.41 - $34.75) / $34.75 = -64.3% 10% stage 1 growth, 11% discount

Fair Value $30.90 11.1% downside ($30.90 - $34.75) / $34.75 = -11.1% 17% stage 1 growth, 11% discount

Bull Case $52.28 50.4% upside ($52.28 - $34.75) / $34.75 = 50.4% 21% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

16.5%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (17% base case)

Terminal Value % of EV 44%

Implied Market Multiple 38.1x

Market is pricing in (growth) 17.6% vs our 16.5% base

Plain-Language Summary

Using a two-stage FCF DCF with 17% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $30.90 per share.

Warnings

⚠ Stock-based employee pay equals 80% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.

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