Archrock, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF with a capex-taper profile: FCF grows from $150M (yr1) to a ~$550M sustaining run-rate by yr10 as fleet-growth capex moderates toward maintenance levels; 9% discount rate; 3% terminal growth; less $2,355M net debt; 175.34M shares outstanding.

Reasoning: Archrock's reported FCF ($119.6M FY2025) is currently suppressed by heavy growth capex funding new compression fleet for LNG-export and AI-power-demand-linked natural gas volumes; modeling capex normalizing over the decade better reflects underlying earnings power than trailing FCF alone.