PHINIA Inc.

PHIN

Consumer CyclicalAuto - PartsNYSE

$78.45

Market Cap: $2.90B

PHINIA Inc. (PHIN) Valuation Summary

Updated May 11, 2026 17:35

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$41.21 – $177.28	$70.80	-9.8%
Growth Exit 10Y	$43.13 – $168.17	$70.75	-9.8%
EBITDA Exit 5Y	$54.15 – $140.79	$93.82	+19.6%
EBITDA Exit 10Y	$52.67 – $138.94	$89.34	+13.9%
▸ Trading Multiples
P/E	$59.34 – $117.44	$81.53	+3.9%
EV/EBITDA	$63.76 – $125.95	$102.37	+30.5%
EV/Revenue	$23.30 – $73.89	$53.83	-31.4%
▸ PEG
PEG Fair Value	$148.23 – $148.23	$148.23	+89.0%
▸ Earnings Power Value
Earnings Power Value	$35.78 – $60.69	$45.84	-41.6%
▸ Dividend Discount
Dividend Discount	$20.08 – $43.77	$29.17	-62.8%

Valuation History

DCF Analysis

Fair Value

$70.80

Market Price

$78.45

Upside / Downside

-9.8%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project PHINIA Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.4% to 2.5% 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 95, DPO 71, DIO 62). At a 7.8% WACC with mid-year discounting, the terminal value (79% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $70.80 per share, suggesting PHIN is fairly valued by 9.8% at the current price of $78.45.

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	251	257	258	267	274	281
(−) Net Interest	63	65	65	68	69	71
(+) D&A	126	124	131	129	137	140
EBITDA	441	446	454	464	480	492

(−) Tax	93	95	95	99	101	104
(−) CapEx	136	139	140	145	148	152
(−) ΔWC	109	20	5	32	23	24
Free Cash Flow (FCFF)	104	192	214	188	207	213

Terminal Value						4,015
WACC / Discount Rate	7.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	100	172	177	145	148	2,759

Enterprise Value	3,500
Projection Period	742	21.2%
Terminal Value	2,759	78.8%

(−) Current Net Debt	661

Equity Value	2,839
(/) Outstanding Shares	40

Fair Price	$70.80

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.8%	$96	$108	$124	$146	$177
6.8%	$75	$82	$91	$103	$118
7.8%	$60	$65	$71	$78	$87
8.8%	$49	$53	$57	$62	$67
9.8%	$41	$44	$47	$50	$54

Current price: $78.45. Green = undervalued, Red = overvalued.

Fair Value

$70.75

Market Price

$78.45

Upside / Downside

-9.8%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project PHINIA 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 4.4% to 2.8% 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 95, DPO 71, DIO 62). At a 7.8% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $70.75 per share, suggesting PHIN is fairly valued by 9.8% at the current price of $78.45.

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	251	257	258	267	274	280	286	293	301	310	317
(−) Net Interest	63	65	65	68	69	71	72	74	76	78	80
(+) D&A	126	124	131	129	137	141	144	148	151	155	159
EBITDA	441	446	454	464	480	492	503	515	529	543	557

(−) Tax	93	95	95	99	101	103	106	108	111	114	117
(−) CapEx	136	139	140	145	148	151	155	159	163	167	172
(−) ΔWC	109	20	5	32	23	20	22	25	27	30	30
Free Cash Flow (FCFF)	104	192	214	188	207	217	220	224	228	232	237

Terminal Value											4,483
WACC / Discount Rate	7.8%
Long-term Growth Rate	2.5%

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	100	172	177	145	148	144	135	127	120	113	2,117

Enterprise Value	3,498
Projection Period	1,382	39.5%
Terminal Value	2,117	60.5%

(−) Current Net Debt	661

Equity Value	2,837
(/) Outstanding Shares	40

Fair Price	$70.75

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.8%	$100	$110	$124	$142	$168
6.8%	$77	$84	$91	$100	$113
7.8%	$62	$66	$71	$76	$83
8.8%	$51	$54	$57	$60	$65
9.8%	$43	$45	$47	$49	$52

Current price: $78.45. Green = undervalued, Red = overvalued.

Fair Value

$93.81

Market Price

$78.45

Upside / Downside

+19.6%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project PHINIA Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.4% to 2.5% 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 95, DPO 71, DIO 62). At a 7.8% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $93.82 per share, suggesting PHIN is undervalued by 19.6% at the current price of $78.45.

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

EV/EBITDA Exit Multiple

10.89x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	251	257	258	267	274	281
(−) Net Interest	63	65	65	68	69	71
(+) D&A	126	124	131	129	137	140
EBITDA	441	446	454	464	480	492

(−) Tax	93	95	95	99	101	—
(−) CapEx	136	139	140	145	148	—
(−) ΔWC	109	20	5	32	23	—
Free Cash Flow (FCF)	104	192	214	188	207	—

Peers' EBITDA Multiple						10.9x
Terminal Value						5,357
WACC / Discount Rate	7.79%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	100	172	177	145	148	3,681

Enterprise Value	4,423
Projection Period	742	16.8%
Terminal Value	3,681	83.2%

(−) Current Net Debt	661
Equity Value	3,762
(÷) Outstanding Shares	40M
Fair Price	$94	+19.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.9x	8.9x	10.9x	12.9x	14.9x
5.8%	$67	$85	$104	$122	$141
6.8%	$63	$81	$99	$116	$134
7.8%	$60	$77	$94	$111	$128
8.8%	$57	$73	$89	$105	$121
9.8%	$54	$70	$85	$100	$116

Current price: $78.45. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$89.32

Market Price

$78.45

Upside / Downside

+13.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project PHINIA 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 4.4% to 2.8% 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 95, DPO 71, DIO 62). At a 7.8% WACC with mid-year discounting, the terminal value (67% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.9x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $89.34 per share, suggesting PHIN is fairly valued by 13.9% at the current price of $78.45.

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

EV/EBITDA Exit Multiple

10.89x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	251	257	258	267	274	280	286	293	301	310	317
(−) Net Interest	63	65	65	68	69	71	72	74	76	78	80
(+) D&A	126	124	131	129	137	141	144	148	151	155	159
EBITDA	441	446	454	464	480	492	503	515	529	543	557

(−) Tax	93	95	95	99	101	103	106	108	111	114	—
(−) CapEx	136	139	140	145	148	151	155	159	163	167	—
(−) ΔWC	109	20	5	32	23	20	22	25	27	30	—
Free Cash Flow (FCF)	104	192	214	188	207	217	220	224	228	232	—

Peers' EBITDA Multiple											10.9x
Terminal Value											6,060
WACC / Discount Rate	7.79%

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	100	172	177	145	148	144	135	127	120	113	2,861

Enterprise Value	4,243
Projection Period	1,382	32.6%
Terminal Value	2,861	67.4%

(−) Current Net Debt	661
Equity Value	3,582
(÷) Outstanding Shares	40M
Fair Price	$89	+13.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.9x	8.9x	10.9x	12.9x	14.9x
5.8%	$76	$92	$107	$123	$139
6.8%	$69	$84	$98	$112	$127
7.8%	$63	$76	$89	$102	$116
8.8%	$58	$70	$82	$94	$105
9.8%	$53	$64	$74	$85	$96

Current price: $78.45. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$81.53

Market Price

$78.45

Upside / Downside

+3.9%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), PHINIA Inc. (PHIN) has a fair value of $81.53 based on 6 comparable companies in the Auto - Parts industry.

P/E Valuation — Auto - Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
PHINIA Inc.PHIN	3,146	24.2x	13.2x
Dana IncorporatedDAN	4,639	54.2x	13.7x
Sonic Automotive, Inc.SAH	2,718	23.4x	14.5x
Mister Car Wash, Inc.MCW	2,315	22.7x	20.0x
Blue Bird CorporationBLBD	2,248	18.3x	14.9x
Wolverine World Wide, Inc.WWW	1,394	14.9x	19.1x
Tripadvisor, Inc.TRIP	1,307	36.2x	7.7x
Industry Median		23.1x	14.7x
(*) Profit after tax		130	238
Equity Value		2,999	3,540
(/) Outstanding shares		40	40
Fair Price		$75	$88

Selected Fair Value (avg of trailing + forward)

$81.53

+3.9%

Fair Value

$102.37

Market Price

$78.45

Upside / Downside

+30.5%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), PHINIA Inc. (PHIN) has a fair value of $102.37 based on 8 comparable companies in the Auto - Parts industry.

EV/EBITDA Valuation — Auto - Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
PHINIA Inc.PHIN	3,146	8.7x	8.3x
Dana IncorporatedDAN	4,639	13.5x	13.3x
Sonic Automotive, Inc.SAH	2,718	13.1x	14.2x
Mister Car Wash, Inc.MCW	2,315	11.3x	12.0x
Blue Bird CorporationBLBD	2,248	11.0x	9.3x
The Goodyear Tire & Rubber CompanyGT	1,864	6.1x	6.4x
Adient plcADNT	1,786	7.4x	7.2x
Wolverine World Wide, Inc.WWW	1,394	10.8x	11.6x
Tripadvisor, Inc.TRIP	1,307	7.0x	6.9x
Industry Median		10.9x	10.5x
(*) EBITDA		437	456
= Enterprise Value		4,760	4,772
(-) Net Debt		661	661
Equity Value		4,099	4,111
(/) Outstanding shares		40	40
Fair Price		$102	$103

Selected Fair Value (avg of trailing + forward)

$102.37

+30.5%

Fair Value

$53.83

Market Price

$78.45

Upside / Downside

-31.4%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), PHINIA Inc. (PHIN) has a fair value of $53.83 based on 9 comparable companies in the Auto - Parts industry.

EV/Revenue Valuation — Auto - Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
PHINIA Inc.PHIN	3,146	1.1x	1.0x
Dana IncorporatedDAN	4,639	1.0x	1.0x
Under Armour, Inc.UAA	2,731	0.7x	0.7x
Sonic Automotive, Inc.SAH	2,718	0.5x	0.5x
Mister Car Wash, Inc.MCW	2,315	3.1x	3.3x
Blue Bird CorporationBLBD	2,248	1.4x	1.2x
The Goodyear Tire & Rubber CompanyGT	1,864	0.5x	0.5x
Adient plcADNT	1,786	0.2x	0.2x
Wolverine World Wide, Inc.WWW	1,394	1.0x	1.1x
Tripadvisor, Inc.TRIP	1,307	0.8x	0.8x
Industry Median		0.8x	0.8x
(*) Revenue		3,483	3,637
= Enterprise Value		2,779	2,860
(-) Net Debt		661	661
Equity Value		2,118	2,199
(/) Outstanding shares		40	40
Fair Price		$53	$55

Selected Fair Value (avg of trailing + forward)

$53.83

-31.4%

PEG Fair Value

Fair Value

$148.23

Market Price

$78.45

Upside / Downside

+89.0%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.4% dividend yield, the company has a fair value of $148.23 based on NTM EPS (FY2026) of $5.93. The current PEG ratio is 0.42.

PEG Ratio

0.42Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 13.2 ÷ (30.4% + 1.4%) = 0.42

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateForward	30.4%
Dividend Yield	+1.4%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$5.93
Fair Value	$148.23

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$3.24	—	—
FY2026E	$5.93	+83.0%	3
FY2027E	$6.66	+12.3%	3
FY2028E	$7.19	+8.0%	3

3Y Forward EPS CAGR: 30.4%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$152.0M	$3.23	—
FY2022	$262.0M	$5.57	+72.4%
FY2023	$102.0M	$2.17	-61.0%
FY2024	$79.0M	$1.76	-18.9%
FY2025	$130.0M	$3.24	+84.1%

4Y Historical EPS CAGR: 0.1%

Earnings Power Value

Fair Value

$45.84

Market Price

$78.45

Upside / Downside

-41.6%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.8% and normalized earnings of $194.8M, the company has a fair value of $45.84 per share. The EPV range is $35.78 – $60.69 based on WACC sensitivity (6.3% – 9.3%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	195	195	195
(/) WACC	9.3%	7.8%	6.3%
Enterprise Value	2,096	2,499	3,095
(-) Net debt	661	661	661
Equity Value	1,435	1,838	2,434
(/) Outstanding shares	40	40	40
Fair Price	$35.78	$45.84	$60.69

Dividend Discount Model

Fair Value

$29.17

Market Price

$78.45

Upside / Downside

-62.8%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.7% and projected dividend growth of 15.0%, the fair value is $29.17 per share. The DDM range is $20.08 – $43.77 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.05

Dividend Yield

1.45%

Payout Ratio

32.3%

Dividend Coverage

3.10x

FCF Payout Ratio22.3%

DPS CAGR (2Y)46.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.05	32.3%	+6.6%
2024	$0.98	55.7%	+100.7%
2023	$0.49	22.5%	—
2022	—	0.0%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.20	15.0%	0.9200	$1.11
2027	$1.39	15.0%	0.8463	$1.17
2028	$1.59	15.0%	0.7786	$1.24
2029	$1.83	15.0%	0.7163	$1.31
2030	$2.11	15.0%	0.6590	$1.39
Terminal Value	$2.16 DPS	2.5%		$22.95

PV of Projected Dividends$6.22

PV of Terminal Value$22.95

Fair Value per Share$29.17

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
6.7%	$40	$42	$44	$44	$44
7.7%	$32	$34	$35	$35	$35
8.7%	$27	$28	$29	$29	$29
9.7%	$23	$24	$25	$25	$25
10.7%	$20	$21	$22	$22	$22

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.

PHINIA Inc. (PHIN) Valuation Summary

Updated May 11, 2026 17:35

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$41.21 – $177.28	$70.80	-9.8%
Growth Exit 10Y	$43.13 – $168.17	$70.75	-9.8%
EBITDA Exit 5Y	$54.15 – $140.79	$93.82	+19.6%
EBITDA Exit 10Y	$52.67 – $138.94	$89.34	+13.9%
▸ Trading Multiples
P/E	$59.34 – $117.44	$81.53	+3.9%
EV/EBITDA	$63.76 – $125.95	$102.37	+30.5%
EV/Revenue	$23.30 – $73.89	$53.83	-31.4%
▸ PEG
PEG Fair Value	$148.23 – $148.23	$148.23	+89.0%
▸ Earnings Power Value
Earnings Power Value	$35.78 – $60.69	$45.84	-41.6%
▸ Dividend Discount
Dividend Discount	$20.08 – $43.77	$29.17	-62.8%

Valuation History

DCF Analysis

Fair Value

$70.80

Market Price

$78.45

Upside / Downside

-9.8%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	251	257	258	267	274	281
(−) Net Interest	63	65	65	68	69	71
(+) D&A	126	124	131	129	137	140
EBITDA	441	446	454	464	480	492

(−) Tax	93	95	95	99	101	104
(−) CapEx	136	139	140	145	148	152
(−) ΔWC	109	20	5	32	23	24
Free Cash Flow (FCFF)	104	192	214	188	207	213

Terminal Value						4,015
WACC / Discount Rate	7.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	100	172	177	145	148	2,759

Enterprise Value	3,500
Projection Period	742	21.2%
Terminal Value	2,759	78.8%

(−) Current Net Debt	661

Equity Value	2,839
(/) Outstanding Shares	40

Fair Price	$70.80

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.8%	$96	$108	$124	$146	$177
6.8%	$75	$82	$91	$103	$118
7.8%	$60	$65	$71	$78	$87
8.8%	$49	$53	$57	$62	$67
9.8%	$41	$44	$47	$50	$54

Current price: $78.45. Green = undervalued, Red = overvalued.

Fair Value

$70.75

Market Price

$78.45

Upside / Downside

-9.8%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	251	257	258	267	274	280	286	293	301	310	317
(−) Net Interest	63	65	65	68	69	71	72	74	76	78	80
(+) D&A	126	124	131	129	137	141	144	148	151	155	159
EBITDA	441	446	454	464	480	492	503	515	529	543	557

(−) Tax	93	95	95	99	101	103	106	108	111	114	117
(−) CapEx	136	139	140	145	148	151	155	159	163	167	172
(−) ΔWC	109	20	5	32	23	20	22	25	27	30	30
Free Cash Flow (FCFF)	104	192	214	188	207	217	220	224	228	232	237

Terminal Value											4,483
WACC / Discount Rate	7.8%
Long-term Growth Rate	2.5%

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	100	172	177	145	148	144	135	127	120	113	2,117

Enterprise Value	3,498
Projection Period	1,382	39.5%
Terminal Value	2,117	60.5%

(−) Current Net Debt	661

Equity Value	2,837
(/) Outstanding Shares	40

Fair Price	$70.75

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.8%	$100	$110	$124	$142	$168
6.8%	$77	$84	$91	$100	$113
7.8%	$62	$66	$71	$76	$83
8.8%	$51	$54	$57	$60	$65
9.8%	$43	$45	$47	$49	$52

Current price: $78.45. Green = undervalued, Red = overvalued.

Fair Value

$93.81

Market Price

$78.45

Upside / Downside

+19.6%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project PHINIA Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.4% to 2.5% 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 95, DPO 71, DIO 62). At a 7.8% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $93.82 per share, suggesting PHIN is undervalued by 19.6% at the current price of $78.45.

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

EV/EBITDA Exit Multiple

10.89x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	251	257	258	267	274	281
(−) Net Interest	63	65	65	68	69	71
(+) D&A	126	124	131	129	137	140
EBITDA	441	446	454	464	480	492

(−) Tax	93	95	95	99	101	—
(−) CapEx	136	139	140	145	148	—
(−) ΔWC	109	20	5	32	23	—
Free Cash Flow (FCF)	104	192	214	188	207	—

Peers' EBITDA Multiple						10.9x
Terminal Value						5,357
WACC / Discount Rate	7.79%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	100	172	177	145	148	3,681

Enterprise Value	4,423
Projection Period	742	16.8%
Terminal Value	3,681	83.2%

(−) Current Net Debt	661
Equity Value	3,762
(÷) Outstanding Shares	40M
Fair Price	$94	+19.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.9x	8.9x	10.9x	12.9x	14.9x
5.8%	$67	$85	$104	$122	$141
6.8%	$63	$81	$99	$116	$134
7.8%	$60	$77	$94	$111	$128
8.8%	$57	$73	$89	$105	$121
9.8%	$54	$70	$85	$100	$116

Current price: $78.45. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$89.32

Market Price

$78.45

Upside / Downside

+13.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project PHINIA 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 4.4% to 2.8% 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 95, DPO 71, DIO 62). At a 7.8% WACC with mid-year discounting, the terminal value (67% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.9x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $89.34 per share, suggesting PHIN is fairly valued by 13.9% at the current price of $78.45.

FCFF Present Value Calculation

WACC

7.79%

3% – 20%

EV/EBITDA Exit Multiple

10.89x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	251	257	258	267	274	280	286	293	301	310	317
(−) Net Interest	63	65	65	68	69	71	72	74	76	78	80
(+) D&A	126	124	131	129	137	141	144	148	151	155	159
EBITDA	441	446	454	464	480	492	503	515	529	543	557

(−) Tax	93	95	95	99	101	103	106	108	111	114	—
(−) CapEx	136	139	140	145	148	151	155	159	163	167	—
(−) ΔWC	109	20	5	32	23	20	22	25	27	30	—
Free Cash Flow (FCF)	104	192	214	188	207	217	220	224	228	232	—

Peers' EBITDA Multiple											10.9x
Terminal Value											6,060
WACC / Discount Rate	7.79%

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	100	172	177	145	148	144	135	127	120	113	2,861

Enterprise Value	4,243
Projection Period	1,382	32.6%
Terminal Value	2,861	67.4%

(−) Current Net Debt	661
Equity Value	3,582
(÷) Outstanding Shares	40M
Fair Price	$89	+13.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.9x	8.9x	10.9x	12.9x	14.9x
5.8%	$76	$92	$107	$123	$139
6.8%	$69	$84	$98	$112	$127
7.8%	$63	$76	$89	$102	$116
8.8%	$58	$70	$82	$94	$105
9.8%	$53	$64	$74	$85	$96

Current price: $78.45. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$81.53

Market Price

$78.45

Upside / Downside

+3.9%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), PHINIA Inc. (PHIN) has a fair value of $81.53 based on 6 comparable companies in the Auto - Parts industry.

P/E Valuation — Auto - Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
PHINIA Inc.PHIN	3,146	24.2x	13.2x
Dana IncorporatedDAN	4,639	54.2x	13.7x
Sonic Automotive, Inc.SAH	2,718	23.4x	14.5x
Mister Car Wash, Inc.MCW	2,315	22.7x	20.0x
Blue Bird CorporationBLBD	2,248	18.3x	14.9x
Wolverine World Wide, Inc.WWW	1,394	14.9x	19.1x
Tripadvisor, Inc.TRIP	1,307	36.2x	7.7x
Industry Median		23.1x	14.7x
(*) Profit after tax		130	238
Equity Value		2,999	3,540
(/) Outstanding shares		40	40
Fair Price		$75	$88

Selected Fair Value (avg of trailing + forward)

$81.53

+3.9%

Fair Value

$102.37

Market Price

$78.45

Upside / Downside

+30.5%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), PHINIA Inc. (PHIN) has a fair value of $102.37 based on 8 comparable companies in the Auto - Parts industry.

EV/EBITDA Valuation — Auto - Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
PHINIA Inc.PHIN	3,146	8.7x	8.3x
Dana IncorporatedDAN	4,639	13.5x	13.3x
Sonic Automotive, Inc.SAH	2,718	13.1x	14.2x
Mister Car Wash, Inc.MCW	2,315	11.3x	12.0x
Blue Bird CorporationBLBD	2,248	11.0x	9.3x
The Goodyear Tire & Rubber CompanyGT	1,864	6.1x	6.4x
Adient plcADNT	1,786	7.4x	7.2x
Wolverine World Wide, Inc.WWW	1,394	10.8x	11.6x
Tripadvisor, Inc.TRIP	1,307	7.0x	6.9x
Industry Median		10.9x	10.5x
(*) EBITDA		437	456
= Enterprise Value		4,760	4,772
(-) Net Debt		661	661
Equity Value		4,099	4,111
(/) Outstanding shares		40	40
Fair Price		$102	$103

Selected Fair Value (avg of trailing + forward)

$102.37

+30.5%

Fair Value

$53.83

Market Price

$78.45

Upside / Downside

-31.4%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), PHINIA Inc. (PHIN) has a fair value of $53.83 based on 9 comparable companies in the Auto - Parts industry.

EV/Revenue Valuation — Auto - Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
PHINIA Inc.PHIN	3,146	1.1x	1.0x
Dana IncorporatedDAN	4,639	1.0x	1.0x
Under Armour, Inc.UAA	2,731	0.7x	0.7x
Sonic Automotive, Inc.SAH	2,718	0.5x	0.5x
Mister Car Wash, Inc.MCW	2,315	3.1x	3.3x
Blue Bird CorporationBLBD	2,248	1.4x	1.2x
The Goodyear Tire & Rubber CompanyGT	1,864	0.5x	0.5x
Adient plcADNT	1,786	0.2x	0.2x
Wolverine World Wide, Inc.WWW	1,394	1.0x	1.1x
Tripadvisor, Inc.TRIP	1,307	0.8x	0.8x
Industry Median		0.8x	0.8x
(*) Revenue		3,483	3,637
= Enterprise Value		2,779	2,860
(-) Net Debt		661	661
Equity Value		2,118	2,199
(/) Outstanding shares		40	40
Fair Price		$53	$55

Selected Fair Value (avg of trailing + forward)

$53.83

-31.4%

PEG Fair Value

Fair Value

$148.23

Market Price

$78.45

Upside / Downside

+89.0%

Verdict

Undervalued

PEG Ratio

0.42Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 13.2 ÷ (30.4% + 1.4%) = 0.42

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateForward	30.4%
Dividend Yield	+1.4%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$5.93
Fair Value	$148.23

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$3.24	—	—
FY2026E	$5.93	+83.0%	3
FY2027E	$6.66	+12.3%	3
FY2028E	$7.19	+8.0%	3

3Y Forward EPS CAGR: 30.4%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$152.0M	$3.23	—
FY2022	$262.0M	$5.57	+72.4%
FY2023	$102.0M	$2.17	-61.0%
FY2024	$79.0M	$1.76	-18.9%
FY2025	$130.0M	$3.24	+84.1%

4Y Historical EPS CAGR: 0.1%

Earnings Power Value

Fair Value

$45.84

Market Price

$78.45

Upside / Downside

-41.6%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	195	195	195
(/) WACC	9.3%	7.8%	6.3%
Enterprise Value	2,096	2,499	3,095
(-) Net debt	661	661	661
Equity Value	1,435	1,838	2,434
(/) Outstanding shares	40	40	40
Fair Price	$35.78	$45.84	$60.69

Dividend Discount Model

Fair Value

$29.17

Market Price

$78.45

Upside / Downside

-62.8%

Verdict

Overvalued

Dividend Profile

Current DPS

$1.05

Dividend Yield

1.45%

Payout Ratio

32.3%

Dividend Coverage

3.10x

FCF Payout Ratio22.3%

DPS CAGR (2Y)46.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.05	32.3%	+6.6%
2024	$0.98	55.7%	+100.7%
2023	$0.49	22.5%	—
2022	—	0.0%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.20	15.0%	0.9200	$1.11
2027	$1.39	15.0%	0.8463	$1.17
2028	$1.59	15.0%	0.7786	$1.24
2029	$1.83	15.0%	0.7163	$1.31
2030	$2.11	15.0%	0.6590	$1.39
Terminal Value	$2.16 DPS	2.5%		$22.95

PV of Projected Dividends$6.22

PV of Terminal Value$22.95

Fair Value per Share$29.17

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
6.7%	$40	$42	$44	$44	$44
7.7%	$32	$34	$35	$35	$35
8.7%	$27	$28	$29	$29	$29
9.7%	$23	$24	$25	$25	$25
10.7%	$20	$21	$22	$22	$22