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 2,844.902,581.802,853.903,306.603,430.803,610.143,798.863,997.444,206.404,426.29
Revenue (%)
EBITDA 476.20440.20489.30547.10580.20609.33641.18674.70709.97747.08
EBITDA (%)
EBIT 395.10352.60394453.30487.90500.23526.38553.89582.85613.32
EBIT (%)
Depreciation 81.1087.6095.3093.8092.30109.10114.80120.80127.12133.76
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 177.80236.60222.80193.30187.10249.25262.27275.99290.41305.59
Total Cash (%)
Account Receivables 529.50455.30552.70616.60599.70662.40697.02733.46771.80812.15
Account Receivables (%)
Inventories 332.80322.70384.50502.40418.10469.68494.24520.07547.26575.86
Inventories (%)
Accounts Payable 237.50187.70293.90338.50304.90325.21342.21360.10378.92398.73
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 2,844.902,581.802,853.903,306.603,430.803,610.143,798.863,997.444,206.404,426.29
EBITDA 476.20440.20489.30547.10580.20609.33641.18674.70709.97747.08
EBIT 395.10352.60394453.30487.90500.23526.38553.89582.85613.32
Tax Rate 28.78%23.33%24.70%24.09%23.45%24.87%24.87%24.87%24.87%24.87%
EBIAT 281.37270.34296.69344.11373.50375.82395.47416.14437.90460.79
Depreciation 81.1087.6095.3093.8092.30109.10114.80120.80127.12133.76
Accounts Receivable -74.20-97.40-63.9016.90-62.70-34.63-36.44-38.34-40.35
Inventories -10.10-61.80-117.9084.30-51.58-24.55-25.84-27.19-28.61
Accounts Payable --49.80106.2044.60-33.6020.311717.8918.8219.81
Capital Expenditure -150.40-122.40-58.30-85.10-118.10-130.59-137.41-144.60-152.16-160.11
UFCF 212.07270.04280.69215.61415.30260.36330.68347.96366.15385.29
WACC
PV UFCF 237.64275.49264.59254.13244.08
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