Discounted Cash Flow (DCF) Analysis Unlevered
Cabot Corporation (CBT)
$74.7
+1.36 (+1.85%)
All numbers are in Millions, Currency in USD
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 | 3,242 | 3,337 | 2,614 | 3,409 | 4,321 | 4,736.14 | 5,191.16 | 5,689.91 | 6,236.56 | 6,835.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 283 | 434 | 164 | 582 | 513 | 539.48 | 591.31 | 648.12 | 710.39 | 778.64 |
| EBITDA (%) | ||||||||||
| EBIT | 134 | 286 | 6 | 422 | 367 | 320.22 | 350.98 | 384.70 | 421.66 | 462.17 |
| EBIT (%) | ||||||||||
| Depreciation | 149 | 148 | 158 | 160 | 146 | 219.26 | 240.33 | 263.42 | 288.72 | 316.46 |
| 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 | 175 | 169 | 151 | 168 | 206 | 245.66 | 269.26 | 295.13 | 323.48 | 354.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 637 | 530 | 418 | 645 | 836 | 850.51 | 932.23 | 1,021.79 | 1,119.96 | 1,227.56 |
| Account Receivables (%) | ||||||||||
| Inventories | 511 | 466 | 359 | 523 | 664 | 702.55 | 770.05 | 844.03 | 925.12 | 1,014 |
| Inventories (%) | ||||||||||
| Accounts Payable | 446 | 390 | 316 | 480 | 533 | 605.74 | 663.93 | 727.72 | 797.64 | 874.27 |
| 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 | 3,242 | 3,337 | 2,614 | 3,409 | 4,321 | 4,736.14 | 5,191.16 | 5,689.91 | 6,236.56 | 6,835.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 283 | 434 | 164 | 582 | 513 | 539.48 | 591.31 | 648.12 | 710.39 | 778.64 |
| EBIT | 134 | 286 | 6 | 422 | 367 | 320.22 | 350.98 | 384.70 | 421.66 | 462.17 |
| Tax Rate | 196.58% | 38.43% | -621.21% | 38.42% | 37.61% | -62.03% | -62.03% | -62.03% | -62.03% | -62.03% |
| EBIAT | -129.42 | 176.09 | 43.27 | 259.85 | 228.96 | 518.86 | 568.71 | 623.35 | 683.23 | 748.87 |
| Depreciation | 149 | 148 | 158 | 160 | 146 | 219.26 | 240.33 | 263.42 | 288.72 | 316.46 |
| Accounts Receivable | - | 107 | 112 | -227 | -191 | -14.51 | -81.71 | -89.56 | -98.17 | -107.60 |
| Inventories | - | 45 | 107 | -164 | -141 | -38.55 | -67.50 | -73.98 | -81.09 | -88.88 |
| Accounts Payable | - | -56 | -74 | 164 | 53 | 72.74 | 58.20 | 63.79 | 69.92 | 76.63 |
| Capital Expenditure | -229 | -224 | -200 | -195 | -211 | -303.40 | -332.55 | -364.50 | -399.52 | -437.91 |
| UFCF | -209.42 | 196.09 | 146.27 | -2.15 | -115.04 | 454.39 | 385.47 | 422.50 | 463.09 | 507.59 |
| WACC | ||||||||||
| PV UFCF | 421.12 | 331.09 | 336.33 | 341.65 | 347.06 | |||||
| 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 |