Discounted Cash Flow (DCF) Analysis Unlevered
Donaldson Company, Inc. (DCI)
$59.79
+0.37 (+0.62%)
All numbers are in Millions, Currency in USD
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 |