Discounted Cash Flow (DCF) Analysis Unlevered

Cabot Corporation (CBT)

$74.7

+1.36 (+1.85%)
All numbers are in Millions, Currency in USD
Stock DCF: 113.48 | 74.7 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,2423,3372,6143,4094,3214,736.145,191.165,689.916,236.566,835.74
Revenue (%)
EBITDA 283434164582513539.48591.31648.12710.39778.64
EBITDA (%)
EBIT 1342866422367320.22350.98384.70421.66462.17
EBIT (%)
Depreciation 149148158160146219.26240.33263.42288.72316.46
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 175169151168206245.66269.26295.13323.48354.56
Total Cash (%)
Account Receivables 637530418645836850.51932.231,021.791,119.961,227.56
Account Receivables (%)
Inventories 511466359523664702.55770.05844.03925.121,014
Inventories (%)
Accounts Payable 446390316480533605.74663.93727.72797.64874.27
Accounts Payable (%)
Capital Expenditure -229-224-200-195-211-303.40-332.55-364.50-399.52-437.91
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 74.7
Beta 1.354
Diluted Shares Outstanding 56.90
Cost of Debt
Tax Rate 37.61
After-tax Cost of Debt 2.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.920
Total Debt 1,526
Total Equity 4,250.43
Total Capital 5,776.43
Debt Weighting 26.42
Equity Weighting 73.58
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,2423,3372,6143,4094,3214,736.145,191.165,689.916,236.566,835.74
EBITDA 283434164582513539.48591.31648.12710.39778.64
EBIT 1342866422367320.22350.98384.70421.66462.17
Tax Rate 196.58%38.43%-621.21%38.42%37.61%-62.03%-62.03%-62.03%-62.03%-62.03%
EBIAT -129.42176.0943.27259.85228.96518.86568.71623.35683.23748.87
Depreciation 149148158160146219.26240.33263.42288.72316.46
Accounts Receivable -107112-227-191-14.51-81.71-89.56-98.17-107.60
Inventories -45107-164-141-38.55-67.50-73.98-81.09-88.88
Accounts Payable --56-741645372.7458.2063.7969.9276.63
Capital Expenditure -229-224-200-195-211-303.40-332.55-364.50-399.52-437.91
UFCF -209.42196.09146.27-2.15-115.04454.39385.47422.50463.09507.59
WACC
PV UFCF 421.12331.09336.33341.65347.06
SUM PV UFCF 1,777.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.90
Free cash flow (t + 1) 517.74
Terminal Value 8,775.21
Present Value of Terminal Value 5,999.99

Intrinsic Value

Enterprise Value 7,777.24
Net Debt 1,320
Equity Value 6,457.24
Shares Outstanding 56.90
Equity Value Per Share 113.48