Fair Isaac Corporation’s DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.13%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 5%

Historical Data

Revenue growth in the last 10 years (CAGR): 8.29%

Earnings growth in the last 10 years (CAGR): 21.87%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 20.11%

Future Assumptions

End of Year FCF growth: 10%

Growth until end of 2026: 15%

Growth until end of 2034: 10%

Perpetual growth: 3.1%

Net Debt: 2.402B

Outstanding Stock Options Present Value Assumption: $19.177B

Stock Appreciation Rights Valuation Assumption: $0.201B

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.698B

Stock Valuation based on these assumptions: $2531

Last update 07/14/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Fair Isaac Corporation (FICO) and I don’t plan to add a position in the coming days.