DCF Valuation
Castle Biosciences Inc (CSTL) DCF Valuation — Is CSTL overvalued?
The estimated DCF fair value of one Castle Biosciences Inc (CSTL) share is $12.23. Compared to the current market price of $30.40, the stock is overvalued by 59.8%.
DCF fair value
$12.23
Market price
$30.40
Upside / downside
−59.8%
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Castle Biosciences Inc (CSTL) DCF valuation FAQ
What is the DCF fair value of Castle Biosciences Inc (CSTL)?
The discounted-cash-flow model estimates the intrinsic fair value of one Castle Biosciences Inc (CSTL) share at $12.23, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Castle Biosciences Inc (CSTL) overvalued or undervalued?
Against the current market price of $30.40, the DCF fair value of $12.23 implies CSTL is overvalued by 59.8%.
How is the CSTL DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Castle Biosciences Inc's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Castle Biosciences Inc files a new quarterly or annual report.
How this CSTL valuation is built
The model projects ten years of Castle Biosciences Inc's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Castle Biosciences Inc's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.
WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.
The market price refreshes daily; the DCF fair value updates when Castle Biosciences Inc files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.