Builders FirstSource, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $700M normalized FCF base (below FY2025's cash-flow-favorable $853M, adjusted for working-capital tailwinds unwinding); -5% FCF growth in year 1 (matching 2026 guidance of roughly -5.5% revenue), returning to 2%-4% years 2-5 as housing volumes stabilize; 3% years 6-10; 9% discount rate; 2.5% terminal growth; $4.92B net debt; 107.6M shares outstanding.

Reasoning: Builders FirstSource is a scaled, cash-generative building-products distributor whose value is best captured by a mid-cycle-normalized DCF; the near-term decline reflects softer single-family housing starts and pricing deflation in 2026 guidance, with growth normalizing as the housing cycle stabilizes.