Cardinal Health, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF. Normalized unlevered FCF base of $3,200M (levered FCF of $4,525M FY26 / $1,850M FY25 / $3,251M FY24 / $2,363M FY23, averaged to smooth large working-capital swings, plus an estimated $240M after-tax interest add-back on about $10.0B total debt); 6.0% growth years 1-5, 3.5% years 6-10; 8.0% discount rate; 2.5% terminal growth. PV of years 1-10 FCF $27,982M plus PV of terminal value $43,904M gives enterprise value $71,886M; less net debt of $5,142M gives equity value $66,744M; divided by 231.56M diluted shares = $288.24/share.

Reasoning: Cardinal Health is a pharmaceutical and medical-surgical distributor with razor-thin net margins where free cash flow, not earnings, is the right valuation driver, with growth assumptions reflecting continuing specialty-pharma volume tailwinds.