Hey guys,
ServiceTitan (TTAN) is around $57 after the recent selloff.
FY27 revenue guidance is about $1.14B, recent growth \~21%, with \~$480M cash and little debt. Biggest concern for me is SBC/dilution.
My DCF:
Conservative case: \~12% growth fading to 4%, 19% terminal FCF margin, 11% discount rate → \~$34/share
Base case: stronger mid-teens growth and \~25% long-term FCF margin → \~$78/share
So $57 sits somewhere between a pretty pessimistic case and a reasonable base case.
Anyone following TTAN? What growth/FCF margin assumptions do you think are realistic? I feel in my pessimistic case I’m being too harsh so 57 bucks looks pretty good to pay for it.