Charles River Laboratories International, Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage FCFE DCF: $0.42B normalized free cash flow base (between FY2025 $0.52B and depressed TTM $0.37B, reflecting the ongoing biotech-funding-driven demand slowdown); 4% annual FCF growth for years 1-5 reflecting a gradual recovery in biopharma R&D outsourcing demand; 4% for years 6-10; 9% discount rate; 3% terminal growth; $2.84B net debt ($3.03B total debt less $0.19B cash); 47.74M shares outstanding.

Reasoning: Charles River is a contract research organization whose revenue and cash flow are currently depressed by a cyclical pullback in biotech and pharma R&D spending; a normalized FCF base avoids over-weighting the trough TTM figure, while the 9% discount rate reflects funding-cycle and customer-concentration risk in the CRO industry.