Is The Cooper Companies, Inc. (COO) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $63.93, The Cooper Companies, Inc. (COO) trades roughly at TickerWorth's blended fair value of $63.95 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices COO in line with our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +0.0% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values COO at about $55.41 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts The Cooper Companies, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.6%, with a long-run terminal growth rate of 2.5%. About 76% 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, COO's modeled DCF value ranges from about $36.70 to $99.63 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 The Cooper Companies, Inc. 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 COO's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind COO's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $4,092,400,000 | CooperCompanies FY2025 10-K (accession 0001628280-25-055615, filed 2025-12-05): Net sales FY2025 $4,092.4M (us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, year ended 31 Oct 2025): +5% reported, +4% organic. CooperVision $2,743.8M (67%), CooperSurgical $1,348.6M (33%) per the Q4 release. FISCAL YEAR ENDS 31 OCTOBER, so FY2026 (Year 1) ends 31 Oct 2026 and three of its four quarters are already reported. CROSS-CHECK: 9M FY2026 revenue $3,171.8M, +4.8% on 9M FY2025's $3,027.3M (Q3 alone +0.6%). |
| Base EBIT margin | 16.7% | CooperCompanies FY2025 10-K (accession 0001628280-25-055615, filed 2025-12-05): GAAP operating income $682.9M / $4,092.4M = 16.69%, AS REPORTED. NOT the basis of the forecast — see forecast.ebit_margin. The forecast margin is struck BEFORE amortization of acquired intangibles ($199.2M in FY2025) and AFTER a standing 1.5%-of-revenue charge for Cooper's recurring 'non-recurring' items. On that basis FY2025 was 24.3%: non-GAAP operating income $1,055.8M (25.8%, per the Q4 release reconciliation) less 1.5%. FY2025 GAAP was unusually depressed by $173.7M of non-amortization charges (4.2% of revenue: $50.9M business optimization from the Q4 reorganization, $51.8M product-line exit at CooperSurgical, $43.2M integration, $21.9M EU MDR, $5.9M other) against $64.4M (1.65%) in FY2024. Kept as reported here so the base line matches the filing; this base value is not used by the DCF arithmetic except in the site's peak-margin check, which it does not affect (Y1 is higher). |
| Forecast revenue growth | 4% → 4% → 4% → 4% → 4% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide rate shared by every researched model in this run. |
| Beta | 0.82 | Yahoo Finance / yfinance published beta (5Y monthly): Published 5Y-monthly beta 0.825, used as published — not normalized. Cooper is a medical-device company with moderate leverage (net debt ~2.0x EBITDA), so there is no strong reason to move it; the activist and strategic-review swings of 2025-26 are a handful of monthly points. Raising it to 1.0 would cut the value to ~$48; each 0.1 of beta is worth ~$4/share. |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Contact lenses are a slow-growing, recurring-purchase market (Cooper's own organic growth ran ~4-5% for years) and fertility has structural tailwinds, so 2.5% is not generous for this business. 2.0% takes ~$4/share off. Well below the 8.64% WACC. |
| Diluted shares | 193M | CooperCompanies Q3 FY2026 10-Q (accession 0001628280-26-061160, filed 2026-09-09): Q3 FY2026 weighted-average diluted shares 193.4M (200.0M a year earlier). Period-end outstanding was already lower, 190.1M at 31 Jul 2026, after 4.9M shares were repurchased in Q3 for $339.1M (avg $69.16); using the weighted count is ~$0.90/share conservative. Buyback authorization raised from $2B to $3B on 2026-09-09, ~$1.5B remaining. No convertibles. |
| Market price | $63.93 | Delayed quote · as of 2026-11-10 05:01 UTC |
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