Franklin Templeton Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $1.0B normalized FCF base (approximating FY2025 operating cash flow of $1.1B less minimal asset-manager capex); 6% annual FCF growth years 1-5 (my mid-case, driven by ~11% AUM growth and margin expansion from the shift toward higher-fee alternatives/private markets); 4% growth years 6-10; 9% discount rate; 3% terminal growth; ~$3.15B net cash; 516.0M diluted shares outstanding

Reasoning: Franklin Resources' revenue is fee-based on AUM, so cash flow tracks AUM growth and fee-rate/margin trends rather than unit sales; the record alternatives AUM and 430bp YoY operating-margin improvement support a mid-single-digit growth assumption, and the large net cash cushion adds directly to per-share value