Copart, Inc.

AI-generated fair value estimate for this company.

Method: 10-year DCF on TTM unlevered FCF of $1.27B; FCF growth 4% years 1-2 (recovery from the recent sharp deceleration in insurance-claims-driven volume), 7% years 3-5 (reversion toward Copart's historical double-digit growth algorithm), 6% years 6-8, 5% years 9-10; 8% discount rate reflecting Copart's high quality, net-cash balance sheet and durable competitive position; 3% terminal growth; net cash $4.40B; 926.3M diluted shares.

Reasoning: Copart's revenue growth decelerated sharply in the most recent period (from +9.7% to +0.4%), which looks like a cyclical air-pocket tied to claims frequency/used-vehicle values rather than a structural change to its high-margin online salvage-auction marketplace, so the DCF assumes a reversion toward its historical growth trend; the result implies meaningful upside versus the current share price.