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	2,734.20	2,844.90	2,581.80	2,853.90	3,306.60	3,481.87	3,666.43	3,860.77	4,065.41	4,280.90
Revenue (%)
EBITDA	461.60	476.20	440.20	489.30	547.10	587.47	618.61	651.40	685.93	722.29
EBITDA (%)
EBIT	384.90	395.10	352.60	394	453.30	481.45	506.97	533.84	562.14	591.94
EBIT (%)
Depreciation	76.70	81.10	87.60	95.30	93.80	106.02	111.64	117.56	123.79	130.35
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	204.70	177.80	236.60	222.80	193.30	254.55	268.04	282.25	297.21	312.96
Total Cash (%)
Account Receivables	534.60	529.50	455.30	552.70	616.60	653.29	687.92	724.39	762.78	803.21
Account Receivables (%)
Inventories	334.10	332.80	322.70	384.50	502.40	453.22	477.24	502.54	529.18	557.23
Inventories (%)
Accounts Payable	201.30	237.50	187.70	293.90	338.50	303.03	319.10	336.01	353.82	372.58
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	2,734.20	2,844.90	2,581.80	2,853.90	3,306.60	3,481.87	3,666.43	3,860.77	4,065.41	4,280.90
EBITDA	461.60	476.20	440.20	489.30	547.10	587.47	618.61	651.40	685.93	722.29
EBIT	384.90	395.10	352.60	394	453.30	481.45	506.97	533.84	562.14	591.94
Tax Rate	50.41%	28.78%	23.33%	24.70%	24.09%	30.26%	30.26%	30.26%	30.26%	30.26%
EBIAT	190.86	281.37	270.34	296.69	344.11	335.75	353.55	372.29	392.02	412.80
Depreciation	76.70	81.10	87.60	95.30	93.80	106.02	111.64	117.56	123.79	130.35
Accounts Receivable	-	5.10	74.20	-97.40	-63.90	-36.69	-34.63	-36.46	-38.40	-40.43
Inventories	-	1.30	10.10	-61.80	-117.90	49.18	-24.02	-25.30	-26.64	-28.05
Accounts Payable	-	36.20	-49.80	106.20	44.60	-35.47	16.06	16.91	17.81	18.75
Capital Expenditure	-97.50	-150.70	-124.40	-59	-85.50	-127.68	-134.44	-141.57	-149.08	-156.98
UFCF	170.06	254.37	268.04	279.99	215.21	291.12	288.16	303.43	319.52	336.45
WACC
PV UFCF						267.57	243.43	235.60	228.02	220.69
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