DTM stock price has shown resilience against broader market volatility, hovering near $51. In March, two insiders, including the company’s CFO, bought a total of around $103,357 worth of DT Midstream shares at an average price of $91.81 per share. Currently, the stock trades at $96.98, down 2.46% since the beginning of the year. However, over the past 12 months, DT Midstream returned 63.24% to its investors. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Despite market softness, DTM stock price remains stable at $51.
