Discounted Cash Flow (DCF) Analysis Unlevered

Donaldson Company, Inc. (DCI)

$59.79

+0.37 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 33.18 | 59.79 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,844.90	2,581.80	2,853.90	3,306.60	3,430.80	3,610.14	3,798.86	3,997.44	4,206.40	4,426.29
Revenue (%)
EBITDA	476.20	440.20	489.30	547.10	580.20	609.33	641.18	674.70	709.97	747.08
EBITDA (%)
EBIT	395.10	352.60	394	453.30	487.90	500.23	526.38	553.89	582.85	613.32
EBIT (%)
Depreciation	81.10	87.60	95.30	93.80	92.30	109.10	114.80	120.80	127.12	133.76
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	177.80	236.60	222.80	193.30	187.10	249.25	262.27	275.99	290.41	305.59
Total Cash (%)
Account Receivables	529.50	455.30	552.70	616.60	599.70	662.40	697.02	733.46	771.80	812.15
Account Receivables (%)
Inventories	332.80	322.70	384.50	502.40	418.10	469.68	494.24	520.07	547.26	575.86
Inventories (%)
Accounts Payable	237.50	187.70	293.90	338.50	304.90	325.21	342.21	360.10	378.92	398.73
Accounts Payable (%)
Capital Expenditure	-150.40	-122.40	-58.30	-85.10	-118.10	-130.59	-137.41	-144.60	-152.16	-160.11
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 59.79
Beta	1.189
Diluted Shares Outstanding	123.60
Cost of Debt
Tax Rate	23.45
After-tax Cost of Debt	2.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.208
Total Debt	655.70
Total Equity	7,390.04
Total Capital	8,045.74
Debt Weighting	8.15
Equity Weighting	91.85
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,844.90	2,581.80	2,853.90	3,306.60	3,430.80	3,610.14	3,798.86	3,997.44	4,206.40	4,426.29
EBITDA	476.20	440.20	489.30	547.10	580.20	609.33	641.18	674.70	709.97	747.08
EBIT	395.10	352.60	394	453.30	487.90	500.23	526.38	553.89	582.85	613.32
Tax Rate	28.78%	23.33%	24.70%	24.09%	23.45%	24.87%	24.87%	24.87%	24.87%	24.87%
EBIAT	281.37	270.34	296.69	344.11	373.50	375.82	395.47	416.14	437.90	460.79
Depreciation	81.10	87.60	95.30	93.80	92.30	109.10	114.80	120.80	127.12	133.76
Accounts Receivable	-	74.20	-97.40	-63.90	16.90	-62.70	-34.63	-36.44	-38.34	-40.35
Inventories	-	10.10	-61.80	-117.90	84.30	-51.58	-24.55	-25.84	-27.19	-28.61
Accounts Payable	-	-49.80	106.20	44.60	-33.60	20.31	17	17.89	18.82	19.81
Capital Expenditure	-150.40	-122.40	-58.30	-85.10	-118.10	-130.59	-137.41	-144.60	-152.16	-160.11
UFCF	212.07	270.04	280.69	215.61	415.30	260.36	330.68	347.96	366.15	385.29
WACC
PV UFCF						237.64	275.49	264.59	254.13	244.08
SUM PV UFCF										1,275.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.56
Free cash flow (t + 1)	393
Terminal Value	5,198.41
Present Value of Terminal Value	3,293.14

Intrinsic Value

Enterprise Value	4,569.08
Net Debt	468.60
Equity Value	4,100.48
Shares Outstanding	123.60
Equity Value Per Share	33.18