INTUIT INC. (INTU) DCF Valuation & Fundamental Primer
INTUIT INC. (INTU) currently trades at $624.13 with an enterprise value of $135.83B. Our proprietary institutional model rates INTUIT INC. at 78/100 (Grade: A · High-Quality Compounder). The current market price prices in an implied 5-year revenue CAGR of 21.3% vs. historical growth of 14.5% (Fairly Priced to Fundamentals).
Institutional fundamental teardown of Intuit Inc. (INTU) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
INTUIT INC. (INTU) 3-Scenario DCF Valuation Range
Institutional Software Quality Scorecard (78/100 · Grade A)
Strong fundamentals, above-average cash generation, and robust competitive positioning.
Elite deferred revenue float; FCF exceeds operating income by >20%
Standard software SBC dilution; modest equity transfer to employees
Elite Tier-1 SaaS compounder with high gross margin and superior Rule of 40
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 124% of EBIT driven by upfront annual collections
- Top-quartile software unit economics: 80.8% gross margin and 46.8% Rule of 40 score
Key Operational & Dilution Risks
Reverse-DCF Solver: What Growth is Priced Into INTU?
Market implies 21.3% annual revenue growth over next 5 years, in line with company run-rate.
INTUIT INC. (INTU) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $18.83B | $18.83B | $21.56B | $24.68B | $28.25B | $32.34B | $37.03B |
| Gross Profit | $15.21B | $15.21B | $17.41B | $19.93B | $22.82B | $26.12B | $29.90B |
| Operating Income (EBIT) | $4.92B | $4.92B | $5.64B | $6.45B | $7.39B | $8.45B | $9.68B |
| Stock-Based Compensation (SBC) | $1.97B | $1.97B | $2.25B | $2.58B | $2.95B | $3.38B | $3.87B |
| Unlevered Free Cash Flow (FCF) | $6.08B | $6.08B | $6.96B | $7.97B | $9.13B | $10.45B | $11.96B |
| SBC-Adjusted True Cash Flow | $4.12B | $4.11B | $4.71B | $5.39B | $6.17B | $7.07B | $8.09B |
Core Enterprise SaaS & ERP Peer Comparables Matrix
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| INTUIT INC. | INTU | $173.76B | $18.83B | 80.8% | 32.3% | 46.8% | 10.4% | 9.4× |
| ServiceNow, Inc. | NOW | $192.40B | $10.98B | 79.5% | 31.5% | 54.0% | 15.8% | 17.2× |
| Workday, Inc. | WDAY | $38.74B | $2.98B | 74.9% | 20.8% | 41.1% | 17.1% | 12.5× |
| Oracle Corporation | ORCL | $13.08B | $957.1M | 71.9% | 20.4% | 48.0% | 18.2% | 13.4× |
| SAP SE | SAP | $10.73B | $803.6M | 71.7% | 24.9% | 49.5% | 19.6% | 13.0× |
| Adobe Inc. | ADBE | $218.79B | $21.51B | 88.6% | 37.5% | 49.0% | 8.6% | 10.1× |
| Atlassian Corporation | TEAM | $10.00B | $774.5M | 77.7% | 22.6% | 41.7% | 13.1% | 12.3× |
| Peer Cohort Median Benchmark (N=6) | 76.3% | 23.8% | 48.5% | 16.4% | 12.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 9.4× | $177.03B | $173.76B | $624.13 | 0.0% |
| -20% Multiple Compression | 7.5× | $141.63B | $138.35B | $496.95 | -20.0% |
| -35% Multiple Compression | 6.1× | $115.07B | $111.80B | $401.56 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $94.16B | $90.88B | $326.43 | -46.8% |
Frequently Asked Questions: INTUIT INC. (INTU) Valuation
What is INTUIT INC. (INTU)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, INTUIT INC. (INTU) has a Base Case implied value of $476.11 per share (with a Bear Case of $222.38 and a Bull Case of $802.91), compared to its current price of $624.13. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is INTUIT INC. (INTU)'s Rule of 40 score and Free Cash Flow margin?
INTUIT INC. achieves a Rule of 40 score of 46.8%, combining a 14.5% revenue growth run-rate with a 32.3% TTM free cash flow margin on $18.83B in trailing twelve-month revenue. In the Core Enterprise SaaS & ERP peer cohort, the median Rule of 40 benchmark is 48.5%.
What revenue growth rate is priced into INTU stock according to Reverse-DCF analysis?
At $624.13 per share (Enterprise Value of $177.03B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 21.3%, compared to INTUIT INC.'s historical CAGR of 14.5%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does INTUIT INC. compare to Core Enterprise SaaS & ERP software peers?
INTUIT INC. (INTU) earns an institutional Software Quality Score of 78/100 (Grade A — High-Quality Compounder). Across its Core Enterprise SaaS & ERP peer group (NOW, WDAY, ORCL, SAP, ADBE), the cohort trades at a median EV/TTM Revenue multiple of 12.8× and a median gross margin of 76.3%.
How does Stock-Based Compensation (SBC) impact INTUIT INC. (INTU)'s valuation?
INTUIT INC. recorded $1.97B in TTM stock-based compensation (10.5% of revenue). When treating SBC as a cash-equivalent compensation expense, INTUIT INC.'s SBC-adjusted free cash flow yield is 2.4%, scoring 16/25 on our Shareholder Dilution Friction pillar.