Discounted Cash Flow (DCF) Analysis Unlevered

Donaldson Company, Inc. (DCI)

$59.34

+1.18 (+2.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 32.36 | 59.34 | overvalue

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 2,734.202,844.902,581.802,853.903,306.603,481.873,666.433,860.774,065.414,280.90
Revenue (%)
EBITDA 461.60476.20440.20489.30547.10587.47618.61651.40685.93722.29
EBITDA (%)
EBIT 384.90395.10352.60394453.30481.45506.97533.84562.14591.94
EBIT (%)
Depreciation 76.7081.1087.6095.3093.80106.02111.64117.56123.79130.35
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 204.70177.80236.60222.80193.30254.55268.04282.25297.21312.96
Total Cash (%)
Account Receivables 534.60529.50455.30552.70616.60653.29687.92724.39762.78803.21
Account Receivables (%)
Inventories 334.10332.80322.70384.50502.40453.22477.24502.54529.18557.23
Inventories (%)
Accounts Payable 201.30237.50187.70293.90338.50303.03319.10336.01353.82372.58
Accounts Payable (%)
Capital Expenditure -97.50-150.70-124.40-59-85.50-127.68-134.44-141.57-149.08-156.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 59.34
Beta 1.209
Diluted Shares Outstanding 125.20
Cost of Debt
Tax Rate 24.09
After-tax Cost of Debt 1.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.419
Total Debt 648
Total Equity 7,429.37
Total Capital 8,077.37
Debt Weighting 8.02
Equity Weighting 91.98
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 2,734.202,844.902,581.802,853.903,306.603,481.873,666.433,860.774,065.414,280.90
EBITDA 461.60476.20440.20489.30547.10587.47618.61651.40685.93722.29
EBIT 384.90395.10352.60394453.30481.45506.97533.84562.14591.94
Tax Rate 50.41%28.78%23.33%24.70%24.09%30.26%30.26%30.26%30.26%30.26%
EBIAT 190.86281.37270.34296.69344.11335.75353.55372.29392.02412.80
Depreciation 76.7081.1087.6095.3093.80106.02111.64117.56123.79130.35
Accounts Receivable -5.1074.20-97.40-63.90-36.69-34.63-36.46-38.40-40.43
Inventories -1.3010.10-61.80-117.9049.18-24.02-25.30-26.64-28.05
Accounts Payable -36.20-49.80106.2044.60-35.4716.0616.9117.8118.75
Capital Expenditure -97.50-150.70-124.40-59-85.50-127.68-134.44-141.57-149.08-156.98
UFCF 170.06254.37268.04279.99215.21291.12288.16303.43319.52336.45
WACC
PV UFCF 267.57243.43235.60228.02220.69
SUM PV UFCF 1,195.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.80
Free cash flow (t + 1) 343.18
Terminal Value 5,046.78
Present Value of Terminal Value 3,310.32

Intrinsic Value

Enterprise Value 4,505.63
Net Debt 454.70
Equity Value 4,050.93
Shares Outstanding 125.20
Equity Value Per Share 32.36