On 12 Nov 2026 our base value for Qnity Electronics is $115.60 a share, 5.8% below its $122.69 close; 0 of 1 valuation methods put it above the price.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $115.60 | -5.8% | free cash flow $777.00m, growth 17.68% for 5 years, then fading to 3% over 5 more, discounted at 10.62%; stress floor $54.56 |
| Exit multiple (P/E) | — | — | no exit multiple: fewer than 12 quarters of usable earnings history, so there is no multiple this name has been shown to trade at. The forward PE is not a substitute — it is today's price divided by earnings, and an anchor built from it can only restate the price |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | none measured |
| Peer beta | 1.33 (median of 74 S&P 500 Information Technology companies) |
| Blend of own and peers | 1.33 (0% own, 100% peers, two-thirds own, one-third peers) |
| Adjusted beta | 1.22 (0.67 × 1.33 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 10.62% |
Free cash flow grows 17.68% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $777.00m | — | — |
| Year 1 | 17.68% | $914.37m | 0.9040 | $826.59m |
| Year 2 | 17.68% | $1.08bn | 0.8172 | $879.34m |
| Year 3 | 17.68% | $1.27bn | 0.7388 | $935.47m |
| Year 4 | 17.68% | $1.49bn | 0.6678 | $995.17m |
| Year 5 | 17.68% | $1.75bn | 0.6037 | $1.06bn |
| Year 6 | 15.23% | $2.02bn | 0.5458 | $1.10bn |
| Year 7 | 12.79% | $2.28bn | 0.4934 | $1.12bn |
| Year 8 | 10.34% | $2.51bn | 0.4460 | $1.12bn |
| Year 9 | 7.89% | $2.71bn | 0.4032 | $1.09bn |
| Year 10 | 5.45% | $2.86bn | 0.3645 | $1.04bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (10.62% − 3%) | $38.67bn |
| Terminal value in today's money | $14.10bn |
| Present value of years 1–10 | $10.18bn |
| Total present value | $24.28bn |
| Shares outstanding | 210.00m |
| Value per share = total ÷ shares | $115.60 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 12.68% | Growth 17.68% | Growth 22.68% |
|---|---|---|---|
| 9.62% | $101.74 | $135.69 | $180.05 |
| 10.62% | $87.18 | $115.60 | $152.62 |
| 11.62% | — | $100.28 | $131.75 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Peer beta | 1.33 | 11.12% | $107.53 |
| Adjusted beta (used) | 1.22 | 10.62% | $115.60 |
The base value is the average of the methods kept in it:
| Method | Value |
|---|---|
| Discounted cash flow | $115.60 |
One method is kept, so the base value is its value: $115.60
Base value $115.60 a share
One-year price simulation: a 10% chance the price is below $61.63 and a 10% chance it is above $230.43 in a year; a 48% chance it is higher than today's $122.69, from 51.19% volatility. The simulation assumes the price drifts up at our discount rate of 10.62% a year.
At $122.69 the price implies free cash flow growing 18.7% a year for five years and then fading toward 3% over five more; its revenue has grown 17.7%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $131.48 | — |
| 9 Oct 2026 | $126.60 | — |
| 16 Oct 2026 | $115.37 | $104.41 |
| 23 Oct 2026 | $109.83 | $105.71 |
| 30 Oct 2026 | $116.67 | $106.78 |
| 6 Nov 2026 | $117.00 | $119.51 |
| 12 Nov 2026 | $122.69 | $115.60 |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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