Cencora, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $3.207B FY2025 free cash flow base; 8% annual FCF growth for years 1-5; 4% for years 6-10; 8% discount rate; 3% terminal growth; $11.65B net debt subtracted; 190.83M shares outstanding.

Reasoning: Cencora is a mature, highly scaled pharmaceutical distributor with thin margins but very stable, recurring free cash flow and strong long-term EPS growth from margin expansion, specialty/GLP-1 drug mix, and buybacks (consensus ~11% EPS growth for FY26-27), so a FCF-based DCF with high near-term growth stepping down to a durable terminal rate best captures the gap between slow revenue growth and much faster per-share value creation; the 8% discount rate reflects investment-grade credit and low cyclicality despite the high absolute debt load.