Cabot Corporation

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $370M normalized FCF base (FY2025 actual $364M); 5% annual growth years 1-5 (Performance Chemicals/battery-materials growth offsetting mature carbon-black demand); 3% years 6-10; 9% discount rate; 2.5% terminal growth; $872M net debt; 54.2M diluted shares.

Reasoning: Cabot is a global specialty-chemicals leader (carbon black plus faster-growing performance materials) with moderate cyclicality tied to auto/tire and industrial production and real but limited pricing power, which a two-stage FCF DCF with an industrial-average discount rate captures reasonably well.