Universal Corporation (UVV) — FAQ

Question 1

What is a reverse DCF analysis?

Accepted Answer

Reverse DCF solves for the annual growth rate implied by the current price, instead of assuming a growth rate to compute fair value. This page runs the model on trailing EPS and on free cash flow per share — both views appear below so you can compare what the market implies under each.

Question 2

What EPS growth is priced into UVV?

Accepted Answer

On the EPS basis, the model implies about 11.4% annual EPS growth for Universal Corporation (UVV) at the current price. Compare to the 5-year historical EPS CAGR of -18.1%.

Question 3

What FCF / share growth is priced into UVV?

Accepted Answer

On the FCF / share basis, the model implies about -10.3% annual free-cash-flow-per-share growth for Universal Corporation (UVV) at the current price.

Question 4

Should I use EPS basis or FCF / share basis?

Accepted Answer

EPS basis is the textbook reverse-DCF input — broadly comparable across companies and easy to relate to next-year analyst consensus — but it is distorted by non-cash items like stock-based compensation and large depreciation. FCF / share is closer to the cash actually available to shareholders after capex; it tends to give a cleaner picture for mature cash-generative businesses, but it is more volatile during heavy-capex years and analyst consensus is not available for it. Most premium DCF tools recommend cross-checking both.

Question 5

What is UVV's fair value based on historical growth?

Accepted Answer

If Universal Corporation (UVV) grew at its historical per-share CAGR in the DCF setup, the model produces the following fair values. Using the historical EPS CAGR, fair value lands at about $5.63 — 89.5% below the current price. Using the historical FCF-per-share CAGR, fair value lands at about $225.72 — 319.9% above the current price.

Question 6

Is UVV overvalued or undervalued?

Accepted Answer

Compare the implied per-share growth on each basis to the corresponding historical CAGR and, for EPS, to analyst consensus. A reverse DCF is one educational lens — it does not account for changes in capital structure, sector cycles, or business-model transitions, and it is not investment advice.

Method	Fair value	Upside vs price
Forward DCF	$5.63	-89.52%
Exit multiple	$58.84	+9.47%
Analyst target	—	—
Graham number	$42.03	-21.80%

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount	1.5%	2.0%	2.5%	3.0%	3.5%
5.5%	-13.3%	-14.1%	-15.1%	-16.3%	-17.7%
6.5%	-11.1%	-11.8%	-12.5%	-13.3%	-14.3%
7.5%	-9.2%	-9.7%	-10.3%	-11.0%	-11.7%
8.5%	-7.5%	-7.9%	-8.4%	-9.0%	-9.6%
9.5%	-5.9%	-6.3%	-6.7%	-7.2%	-7.6%

Fair Value for Universal Corporation (UVV)

Fair value (multi-method)

Valuation methods

Model inputs

Sensitivity — implied growth vs your assumptions

Historical multiples

Frequently asked questions

Universal Corporation (UVV) Key Financials

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