Discounted Cash Flow (DCF) Analysis Levered

Pentair plc (PNR)

$51.78

+0.77 (+1.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 67.91 | 51.78 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	2,965.10	2,957.20	3,017.80	3,764.80	4,121.80	4,492.95	4,897.53	5,338.53	5,819.25	6,343.25
Revenue (%)
Operating Cash Flow	439.10	353	573.60	613.20	363.30	636.70	694.03	756.52	824.64	898.90
Operating Cash Flow (%)
Capital Expenditure	-48.20	-58.50	-62.20	-60.20	-85.20	-83.85	-91.40	-99.63	-108.60	-118.38
Capital Expenditure (%)
Free Cash Flow	390.90	294.50	511.40	553	278.10	552.85	602.63	656.90	716.05	780.52

Weighted Average Cost Of Capital

Share price	$ 51.78
Beta	1.090
Diluted Shares Outstanding	165.60
Cost of Debt
Tax Rate	12.24
After-tax Cost of Debt	2.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.525
Total Debt	2,317.30
Total Equity	8,574.77
Total Capital	10,892.07
Debt Weighting	21.28
Equity Weighting	78.72
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	2,965.10	2,957.20	3,017.80	3,764.80	4,121.80	4,492.95	4,897.53	5,338.53	5,819.25	6,343.25
Operating Cash Flow	439.10	353	573.60	613.20	363.30	636.70	694.03	756.52	824.64	898.90
Capital Expenditure	-48.20	-58.50	-62.20	-60.20	-85.20	-83.85	-91.40	-99.63	-108.60	-118.38
Free Cash Flow	390.90	294.50	511.40	553	278.10	552.85	602.63	656.90	716.05	780.52
WACC
PV LFCF						448.64	456.15	463.79	471.55	479.45
SUM PV LFCF										2,666.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.21
Free cash flow (t + 1)	796.13
Terminal Value	15,280.88
Present Value of Terminal Value	10,788.77

Intrinsic Value

Enterprise Value	13,454.89
Net Debt	2,208.40
Equity Value	11,246.49
Shares Outstanding	165.60
Equity Value Per Share	67.91