DCF for Cencora

I created an excel sheet based on the method provided in the Youtube video. I verified my formulas are matching because I came out with some staggering figures.

With a 9.5% Discount rate:


With the discount rate as given in the video I get an intrinsic value of the company at $269 a share. The current share price of 365$ would suggest that this is an overvalued company. With a -35% difference between intrinsic value and current price.

With a 5% Discount rate:


Using the discount rate suggested by Buffett, the long term government bond rate, I get a truly staggering figure of $829.12 a share. The current share price is at $365. The difference between this valuation and current price is 55% ! That is a truly staggering figure.

This is the first time I have valued a company so I do not have a good sense of whether these are reasonable figures or not. If this was the end all be all way of calculating value of a business, and the 5% discount rate was to be believed, then this would be a no brainer investment.