DCF Valuation
1st Source Corporation (SRCE) DCF Valuation — Is SRCE overvalued?
The estimated DCF fair value of one 1st Source Corporation (SRCE) share is $72.62. Compared to the current market price of $89.99, the stock is overvalued by 19.3%.
DCF fair value
$72.62
Market price
$89.99
Upside / downside
−19.3%
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1st Source Corporation (SRCE) DCF valuation FAQ
What is the DCF fair value of 1st Source Corporation (SRCE)?
The discounted-cash-flow model estimates the intrinsic fair value of one 1st Source Corporation (SRCE) share at $72.62, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is 1st Source Corporation (SRCE) overvalued or undervalued?
Against the current market price of $89.99, the DCF fair value of $72.62 implies SRCE is overvalued by 19.3%.
How is the SRCE DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from 1st Source Corporation's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when 1st Source Corporation files a new quarterly or annual report.
How this SRCE valuation is built
The model projects ten years of 1st Source Corporation'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 1st Source Corporation'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 1st Source Corporation files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.