Dillard's, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $620M normalized FCF base (versus TTM FCF of $635M, trimmed slightly for revenue softness); 1% annual FCF growth years 1-5 (matching analyst consensus of roughly flat revenue); 1.5% years 6-10; 9% discount rate; 2% terminal growth; net cash of $804M (cash $1.26B, debt $457M) added rather than subtracted; 15.62M diluted shares.

Reasoning: Dillard's is a stable, modestly shrinking but highly cash-generative department-store chain with a strong net-cash balance sheet and no major growth catalysts, so a conservative low-growth DCF anchored to current flat-to-slightly-negative analyst consensus revenue growth was used.