Is Fervo Energy Company (FRVO) overvalued or undervalued?
Updated Sep 3, 2026 · auto-modeled from live data · educational, not advice
Backup data source — This price comes from our backup market-data feed. Valuations here are built from company filings and are unaffected.
At a recent price of $17.98, Fervo Energy Company (FRVO) sits above every lens we ran: our valuation lenses put the business somewhere between $6.16 and $6.16 per share, and they disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
The valuation discounts Fervo Energy Company's projected free cash flows at a weighted-average cost of capital (WACC) of 9.7%, with a long-run terminal growth rate of 2.5%. About 72% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, FRVO's modeled DCF value ranges from about $6.16 to $6.16 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Fervo Energy Company would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of FRVO's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind FRVO's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $310,000 | Live feed — totalRevenue (TTM) |
| Base EBIT margin | 2.0% | Computed — trailing operatingMargins, held roughly flat |
| Forecast revenue growth | 5% → 5% → 4% → 4% → 4% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 4.8% | Live feed — US 10-year Treasury yield (^TNX) |
| Beta | 1.10 | Live feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) |
| Terminal growth | 2.5% | Assumption — TickerWorth house default 2.5%, held below WACC |
| Diluted shares | 287M | Live feed — sharesOutstanding |
| Market price | $17.98 | Backup price feed · as of 2026-09-03 08:07 UTC |
Auto-modeled from live market data because it's frequently searched — this is NOT a hand-researched model. Every growth, margin and capital assumption is an algorithmic ESTIMATE, cached and refreshed periodically. Drag the WACC slider to test how sensitive the value is.
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Most undervalued stocks (per our valuation) · All valued stocks · Interactive FRVO valuation & downloadable modelEducational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.