Corpay, Inc.

CPAY ·Industrials, Specialty Business Services, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $509.17
Market Price $401.72
Undervalued By 21.1%

Method: 10-year DCF on TTM unlevered FCF of $1.638B; FCF growth 10% years 1-3, 8% years 4-7, 5% years 8-10; 9% discount rate reflecting elevated leverage from the pending Alpha Group International acquisition alongside strong FCF conversion; 3% terminal growth; net debt ~$7.57B; 65.66M diluted shares.

Reasoning: Corpay is a high-margin, asset-light payments business with a long track record of strong free cash flow conversion and successful serial M&A, so continued double-digit-to-high-single-digit FCF growth was assumed; the elevated net debt from the pending Alpha Group deal was reflected directly in the balance-sheet adjustment, and the result implies meaningful upside versus the current share price.