Donnelley Financial Solutions, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$70.58
Market Price
$49.57
Undervalued By
29.8%
Method: 10-year unlevered FCF DCF: $130M normalized annual FCF base (blend of TTM $152.3M and FY2025 $107.8M); 4% FCF growth years 1-5, 3% years 6-10; 10% discount rate; 2.5% terminal growth; $186.4M net debt ($25.3M cash less $211.7M total debt); 24.59M shares outstanding.
Reasoning: DFIN's compliance/regulatory software and financial-print business is mature and historically cyclical (tied to capital-markets activity), so a DCF with modest, blended growth and a higher discount rate reflecting revenue cyclicality best captures its intrinsic value.