Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Distribution Solutions Group, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 9.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 52, DPO 40, DIO 113). At a 7.2% WACC with mid-year discounting, the terminal value (233% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $5.10 per share, suggesting DSGR is overvalued by 81.4% at the current price of $27.49.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit Before Tax | -13 | -13 | -17 | -23 | -29 | -38 | -49 | -59 | -68 | -74 | -76 |
| (−) Net Interest | 57 | 59 | 77 | 100 | 130 | 169 | 215 | 261 | 300 | 328 | 336 |
| (+) D&A | 24 | 29 | 33 | 38 | 47 | 56 | 71 | 92 | 117 | 144 | 147 |
| EBITDA | 68 | 75 | 93 | 116 | 148 | 187 | 238 | 294 | 349 | 397 | 407 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 38 | 39 | 51 | 67 | 87 | 113 | 144 | 174 | 201 | 219 | — |
| (−) ΔWC | 96 | 22 | 177 | 231 | 300 | 390 | 464 | 459 | 398 | 274 | — |
| Free Cash Flow (FCF) | -66 | 14 | -136 | -182 | -239 | -316 | -370 | -340 | -249 | -96 | — |
| Peers' EBITDA Multiple | 11.4x | ||||||||||
| Terminal Value | 4,638 | ||||||||||
| WACC / Discount Rate | 7.15% | ||||||||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | 5 |
| Present Value of FCF | -64 | 12 | -115 | -143 | -175 | -216 | -236 | -202 | -139 | -50 | 2,326 |
| Enterprise Value | 999 | ||||||||||
| Projection Period | -1,327 | -132.8% | |||||||||
| Terminal Value | 2,326 | 232.8% | |||||||||
| (−) Current Net Debt | 757 | ||||||||||
| Equity Value | 242 | ||||||||||
| (÷) Outstanding Shares | 47M | ||||||||||
| Fair Price | $5 | -81.4% | |||||||||
| WACC \ EV/EBITDA Exit Multiple | 7.4x | 9.4x | 11.4x | 13.4x | 15.4x |
|---|---|---|---|---|---|
| 5.1% | $0 | $2 | $12 | $23 | $33 |
| 6.1% | $0 | $0 | $8 | $18 | $27 |
| 7.1% | $0 | $0 | $5 | $14 | $22 |
| 8.1% | $0 | $0 | $2 | $10 | $18 |
| 9.1% | $0 | $0 | $0 | $7 | $14 |
Current price: $27.49. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), Distribution Solutions Group, Inc. (DSGR) has a fair value of $3.02 based on 5 comparable companies in the Industrial - Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Distribution Solutions Group, Inc.DSGR | 1,297 | 152.7x | — |
| The Gorman-Rupp Company | 1,653 | 31.1x | 48.2x |
| Global Industrial Company | 1,216 | 17.1x | 17.5x |
| Capital Clean Energy Carriers Corp. | 1,111 | 7.2x | 9.9x |
| Lindsay Corporation | 1,090 | 15.2x | 14.8x |
| CRA International, Inc. | 1,075 | 20.1x | 28.2x |
| Industry Median | 17.1x | 17.5x | |
| (*) Profit after tax | 8 | ||
| Equity Value | 143 | ||
| (/) Outstanding shares | 47 | ||
| Fair Price | $3 | ||
Using the industry peer median EV/EBITDA multiple (trailing + forward), Distribution Solutions Group, Inc. (DSGR) has a fair value of $21.44 based on 7 comparable companies in the Industrial - Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Distribution Solutions Group, Inc.DSGR | 1,297 | 12.2x | 14.2x |
| The Gorman-Rupp Company | 1,653 | 16.2x | 16.8x |
| Custom Truck One Source, Inc. | 1,503 | 9.6x | 10.2x |
| Resolute Holdings Management, Inc. | 1,264 | 8.2x | — |
| Global Industrial Company | 1,216 | 11.9x | 12.2x |
| Capital Clean Energy Carriers Corp. | 1,111 | 11.4x | 10.2x |
| Lindsay Corporation | 1,090 | 8.3x | 8.3x |
| CRA International, Inc. | 1,075 | 12.3x | 14.2x |
| Industry Median | 11.4x | 11.2x | |
| (*) EBITDA | 169 | 145 | |
| = Enterprise Value | 1,919 | 1,618 | |
| (-) Net Debt | 757 | 757 | |
| Equity Value | 1,162 | 861 | |
| (/) Outstanding shares | 47 | 47 | |
| Fair Price | $25 | $18 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), Distribution Solutions Group, Inc. (DSGR) has a fair value of $73.21 based on 8 comparable companies in the Industrial - Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Distribution Solutions Group, Inc.DSGR | 1,297 | 1.0x | 1.2x |
| The Gorman-Rupp Company | 1,653 | 2.9x | 3.0x |
| Custom Truck One Source, Inc. | 1,503 | 2.0x | 2.1x |
| Resolute Holdings Management, Inc. | 1,264 | 2.8x | — |
| Global Industrial Company | 1,216 | 0.9x | 0.9x |
| Capital Clean Energy Carriers Corp. | 1,111 | 9.1x | 8.2x |
| Evolv Technologies Holdings, Inc. | 1,092 | 7.4x | 10.7x |
| Lindsay Corporation | 1,090 | 1.4x | 1.4x |
| CRA International, Inc. | 1,075 | 1.6x | 1.8x |
| Industry Median | 2.4x | 2.1x | |
| (*) Revenue | 1,980 | 1,700 | |
| = Enterprise Value | 4,775 | 3,645 | |
| (-) Net Debt | 757 | 757 | |
| Equity Value | 4,018 | 2,888 | |
| (/) Outstanding shares | 47 | 47 | |
| Fair Price | $85 | $61 | |
Using the PEG framework with historical EPS growth of 8.0%, the company has a fair value of $1.44 based on TTM EPS (FY2025) of $0.18.
| EPS Growth RateHistorical | -20.9% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| TTM EPS (FY2025) | $0.18 |
| Fair Value | $1.44 |
No analyst estimates available.
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-5.1M | $0.46 | — |
| FY2022 | $7.4M | $0.21 | -54.3% |
| FY2023 | $-9.0M | $-0.20 | -195.2% |
| FY2024 | $-7.3M | $-0.16 | — |
| FY2025 | $8.3M | $0.18 | — |
4Y Historical EPS CAGR: -20.9%
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.