Fortrea Holdings Inc.

FTRE

HealthcareBiotechnologyNASDAQ

$15.43

Market Cap: $1.46B

Fortrea Holdings Inc. (FTRE) Valuation Summary

Updated May 10, 2026 23:49

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$6.81 – $83.57	$31.34	+103.1%
Revenue DCF 10Y	$10.99 – $81.96	$33.96	+120.1%
▸ Trading Multiples
EV/Revenue	$186.25 – $631.65	$277.83	+1700.6%

Valuation History

DCF Analysis

Fortrea Holdings Inc. (FTRE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$33.96

Market Price

$15.43

Upside / Downside

+120.1%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -1.1% to a target of 13.2% over 5 years, discounted at a WACC of 8.8%, Fortrea Holdings Inc. (FTRE) has an intrinsic value of $33.96 per share (range: $10.99 – $81.96).

Key Assumptions

Current Operating Margin

-1.1%

Target Operating Margin

13.2%

WACC

8.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.2%

Target CapEx/Rev

6.0%

D&A/Revenue

3.7%

Tax Rate

25.1%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,608	-4.2%	1.7%	45	34	97	(44)	146	-59	-56
2027	2,697	3.4%	4.6%	124	93	101	(59)	24	111	98
2028	2,811	4.2%	7.5%	210	157	105	(75)	31	157	127
2029	2,983	6.1%	10.3%	308	231	111	(93)	46	203	151
2030	3,132	5.0%	13.2%	413	310	117	(113)	40	273	187
2031	3,073	-1.9%	13.2%	405	304	115	(126)	-16	309	194
2032	3,045	-0.9%	13.2%	402	301	114	(139)	-7	283	164
2033	3,048	0.1%	13.2%	402	301	114	(154)	1	261	138
2034	3,080	1.1%	13.2%	406	304	115	(170)	9	241	117
2035	3,142	2.0%	13.2%	414	311	117	(189)	17	223	100

Enterprise Value Bridge

Sum of PV(FCFF)1,220

Terminal Value (Gordon Growth at 3.0%)3,948

PV of Terminal Value1,771

Enterprise Value2,991

(–) Net Debt-107

Equity Value3,098

(÷) Shares Outstanding91

Fair Value per Share$33.96

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.8%	$21	$36	$51	$67	$82
7.8%	$17	$29	$41	$53	$65
8.8%	$14	$24	$34	$44	$54
9.8%	$12	$21	$29	$37	$46
10.8%	$11	$18	$25	$33	$40

Current price: $15.43. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Fortrea Holdings Inc. (FTRE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$31.34

Market Price

$15.43

Upside / Downside

+103.1%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-1.1%

Target Operating Margin

13.2%

WACC

8.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.2%

Target CapEx/Rev

6.0%

D&A/Revenue

3.7%

Tax Rate

25.1%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,608	-4.2%	1.7%	45	34	97	(57)	146	-71	-68
2027	2,697	3.4%	4.6%	124	93	101	(84)	24	85	75
2028	2,811	4.2%	7.5%	210	157	105	(115)	31	116	94
2029	2,983	6.1%	10.3%	308	231	111	(150)	46	145	108
2030	3,132	5.0%	13.2%	413	310	117	(188)	40	198	136

Enterprise Value Bridge

Sum of PV(FCFF)345

Terminal Value (Gordon Growth at 3.0%)3,519

PV of Terminal Value2,407

Enterprise Value2,752

(–) Net Debt-107

Equity Value2,859

(÷) Shares Outstanding91

Fair Value per Share$31.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.8%	$14	$32	$49	$66	$84
7.8%	$11	$25	$38	$52	$65
8.8%	$9	$20	$31	$42	$53
9.8%	$8	$17	$26	$36	$45
10.8%	$7	$15	$23	$31	$39

Current price: $15.43. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$277.83

Market Price

$15.43

Upside / Downside

+1700.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Fortrea Holdings Inc. (FTRE) has a fair value of $277.83 based on 7 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Fortrea Holdings Inc.FTRE	1,407	0.5x	0.5x
AnaptysBio, Inc.ANAB	2,990	11.8x	27.5x
Vir Biotechnology, Inc.VIR	1,495	21.1x	10.5x
Maravai LifeSciences Holdings, Inc.MRVI	1,333	6.2x	5.6x
EyePoint Pharmaceuticals, Inc.EYPT	1,145	33.9x	—
Phathom Pharmaceuticals, Inc.PHAT	975	4.8x	2.5x
Xencor, Inc.XNCR	903	8.3x	11.7x
Kura Oncology, Inc.KURA	836	10.5x	6.4x
Industry Median		10.5x	8.4x
(*) Revenue		2,723	2,608
= Enterprise Value		28,553	21,911
(-) Net Debt		-107	-107
Equity Value		28,660	22,017
(/) Outstanding shares		91	91
Fair Price		$314	$241

Selected Fair Value (avg of trailing + forward)

$277.83

+1700.6%

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.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$6.81 – $83.57

$31.34

+103.1%

Revenue DCF 10Y

$10.99 – $81.96

$33.96

+120.1%

▸ Trading Multiples

EV/Revenue

$186.25 – $631.65

$277.83

+1700.6%

DCF Analysis

Fortrea Holdings Inc. (FTRE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$33.96

Market Price

$15.43

Upside / Downside

+120.1%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-1.1%

Target Operating Margin

13.2%

WACC

8.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.2%

Target CapEx/Rev

6.0%

D&A/Revenue

3.7%

Tax Rate

25.1%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,608	-4.2%	1.7%	45	34	97	(44)	146	-59	-56
2027	2,697	3.4%	4.6%	124	93	101	(59)	24	111	98
2028	2,811	4.2%	7.5%	210	157	105	(75)	31	157	127
2029	2,983	6.1%	10.3%	308	231	111	(93)	46	203	151
2030	3,132	5.0%	13.2%	413	310	117	(113)	40	273	187
2031	3,073	-1.9%	13.2%	405	304	115	(126)	-16	309	194
2032	3,045	-0.9%	13.2%	402	301	114	(139)	-7	283	164
2033	3,048	0.1%	13.2%	402	301	114	(154)	1	261	138
2034	3,080	1.1%	13.2%	406	304	115	(170)	9	241	117
2035	3,142	2.0%	13.2%	414	311	117	(189)	17	223	100

Enterprise Value Bridge

Sum of PV(FCFF)1,220

Terminal Value (Gordon Growth at 3.0%)3,948

PV of Terminal Value1,771

Enterprise Value2,991

(–) Net Debt-107

Equity Value3,098

(÷) Shares Outstanding91

Fair Value per Share$33.96

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.8%	$21	$36	$51	$67	$82
7.8%	$17	$29	$41	$53	$65
8.8%	$14	$24	$34	$44	$54
9.8%	$12	$21	$29	$37	$46
10.8%	$11	$18	$25	$33	$40

Current price: $15.43. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$277.83

Market Price

$15.43

Upside / Downside

+1700.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Fortrea Holdings Inc. (FTRE) has a fair value of $277.83 based on 7 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Fortrea Holdings Inc.FTRE	1,407	0.5x	0.5x
AnaptysBio, Inc.ANAB	2,990	11.8x	27.5x
Vir Biotechnology, Inc.VIR	1,495	21.1x	10.5x
Maravai LifeSciences Holdings, Inc.MRVI	1,333	6.2x	5.6x
EyePoint Pharmaceuticals, Inc.EYPT	1,145	33.9x	—
Phathom Pharmaceuticals, Inc.PHAT	975	4.8x	2.5x
Xencor, Inc.XNCR	903	8.3x	11.7x
Kura Oncology, Inc.KURA	836	10.5x	6.4x
Industry Median		10.5x	8.4x
(*) Revenue		2,723	2,608
= Enterprise Value		28,553	21,911
(-) Net Debt		-107	-107
Equity Value		28,660	22,017
(/) Outstanding shares		91	91
Fair Price		$314	$241

Selected Fair Value (avg of trailing + forward)

$277.83

+1700.6%