Discounted Cash Flow (DCF) Analysis Unlevered

Dover Corporation (DOV)

$142.77

+1.33 (+0.94%)

All numbers are in Millions, Currency in USD

Stock DCF: 110.34 | 142.77 | 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	6,992.12	7,136.40	6,683.76	7,907.08	8,508.09	8,968.05	9,452.87	9,963.91	10,502.57	11,070.35
Revenue (%)
EBITDA	1,118.05	1,241.11	1,232.72	1,797.27	1,711.50	1,698.03	1,789.83	1,886.59	1,988.58	2,096.08
EBITDA (%)
EBIT	835.47	968.83	953.67	1,507.14	1,403.96	1,351.58	1,424.65	1,501.67	1,582.85	1,668.42
EBIT (%)
Depreciation	282.58	272.29	279.05	290.12	307.54	346.45	365.18	384.92	405.73	427.66
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	396.22	397.25	513.08	385.50	380.87	506.90	534.31	563.19	593.64	625.73
Total Cash (%)
Account Receivables	1,231.86	1,217.19	1,137.22	1,347.51	1,516.87	1,552.53	1,636.46	1,724.93	1,818.19	1,916.48
Account Receivables (%)
Inventories	748.80	806.14	835.80	1,191.10	1,366.61	1,177.26	1,240.91	1,307.99	1,378.70	1,453.24
Inventories (%)
Accounts Payable	969.53	983.29	853.94	1,073.57	1,148.56	1,210.65	1,276.10	1,345.08	1,417.80	1,494.45
Accounts Payable (%)
Capital Expenditure	-170.99	-186.80	-165.69	-171.46	-220.96	-220.75	-232.69	-245.27	-258.53	-272.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 142.77
Beta	1.339
Diluted Shares Outstanding	143.59
Cost of Debt
Tax Rate	17.25
After-tax Cost of Debt	2.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.849
Total Debt	3,678.28
Total Equity	20,501.06
Total Capital	24,179.34
Debt Weighting	15.21
Equity Weighting	84.79
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	6,992.12	7,136.40	6,683.76	7,907.08	8,508.09	8,968.05	9,452.87	9,963.91	10,502.57	11,070.35
EBITDA	1,118.05	1,241.11	1,232.72	1,797.27	1,711.50	1,698.03	1,789.83	1,886.59	1,988.58	2,096.08
EBIT	835.47	968.83	953.67	1,507.14	1,403.96	1,351.58	1,424.65	1,501.67	1,582.85	1,668.42
Tax Rate	21.38%	19.58%	18.80%	19.77%	17.25%	19.36%	19.36%	19.36%	19.36%	19.36%
EBIAT	656.82	779.10	774.34	1,209.11	1,161.74	1,089.92	1,148.84	1,210.95	1,276.41	1,345.42
Depreciation	282.58	272.29	279.05	290.12	307.54	346.45	365.18	384.92	405.73	427.66
Accounts Receivable	-	14.67	79.97	-210.29	-169.36	-35.66	-83.93	-88.47	-93.25	-98.29
Inventories	-	-57.35	-29.66	-355.29	-175.51	189.35	-63.64	-67.09	-70.71	-74.53
Accounts Payable	-	13.76	-129.35	219.63	74.99	62.09	65.45	68.99	72.72	76.65
Capital Expenditure	-170.99	-186.80	-165.69	-171.47	-220.96	-220.75	-232.69	-245.27	-258.53	-272.50
UFCF	768.41	835.67	808.65	981.81	978.43	1,431.39	1,199.20	1,264.03	1,332.37	1,404.40
WACC
PV UFCF						1,316.22	1,013.99	982.81	952.59	923.30
SUM PV UFCF										5,188.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.75
Free cash flow (t + 1)	1,432.49
Terminal Value	21,222.04
Present Value of Terminal Value	13,952.14

Intrinsic Value

Enterprise Value	19,141.07
Net Debt	3,297.42
Equity Value	15,843.65
Shares Outstanding	143.59
Equity Value Per Share	110.34