Discounted Cash Flow (DCF) Analysis Levered

ITT Inc. (ITT)

$127.97

+1.31 (+1.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.70 | 127.97 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,846.402,477.802,7652,987.703,2833,419.073,560.793,708.383,862.094,022.16
Revenue (%)
Operating Cash Flow 358.60436.90-7.60277.80537.70380.42396.19412.61429.72447.53
Operating Cash Flow (%)
Capital Expenditure -91.40-63.70-88.40-103.90-107.60-107.59-112.05-116.70-121.53-126.57
Capital Expenditure (%)
Free Cash Flow 267.20373.20-96173.90430.10272.83284.14295.92308.18320.96

Weighted Average Cost Of Capital

Share price $ 127.97
Beta 1.426
Diluted Shares Outstanding 82.70
Cost of Debt
Tax Rate 20.98
After-tax Cost of Debt 3.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.944
Total Debt 285.20
Total Equity 10,583.12
Total Capital 10,868.32
Debt Weighting 2.62
Equity Weighting 97.38
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,846.402,477.802,7652,987.703,2833,419.073,560.793,708.383,862.094,022.16
Operating Cash Flow 358.60436.90-7.60277.80537.70380.42396.19412.61429.72447.53
Capital Expenditure -91.40-63.70-88.40-103.90-107.60-107.59-112.05-116.70-121.53-126.57
Free Cash Flow 267.20373.20-96173.90430.10272.83284.14295.92308.18320.96
WACC
PV LFCF 246.37231.70217.90204.92192.72
SUM PV LFCF 1,093.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.74
Free cash flow (t + 1) 330.58
Terminal Value 4,271.12
Present Value of Terminal Value 2,564.60

Intrinsic Value

Enterprise Value 3,658.21
Net Debt -204
Equity Value 3,862.21
Shares Outstanding 82.70
Equity Value Per Share 46.70