Discounted Cash Flow (DCF) Analysis Unlevered

SPX FLOW, Inc. (FLOW)

$86.49

+0.18 (+0.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.75 | 86.49 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,951.50	2,090.10	1,506.60	1,350.60	1,529	1,460.35	1,394.77	1,332.15	1,272.33	1,215.20
Revenue (%)
EBITDA	185.90	228.30	8.70	83.10	183.40	114.42	109.28	104.37	99.68	95.21
EBITDA (%)
EBIT	124.70	169.60	-29.60	42	136.20	71.72	68.50	65.43	62.49	59.68
EBIT (%)
Depreciation	61.20	58.70	38.30	41.10	47.20	42.69	40.77	38.94	37.19	35.52
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	263.70	213.30	299.20	441.50	313.90	282.71	270.02	257.89	246.31	235.25
Total Cash (%)
Account Receivables	439.10	445	270.40	257	271.50	287.76	274.84	262.50	250.71	239.45
Account Receivables (%)
Inventories	293.90	304.80	208.10	199.30	242.80	216.40	206.68	197.40	188.54	180.07
Inventories (%)
Accounts Payable	219.40	203.70	142.60	149.10	173.80	154.39	147.46	140.83	134.51	128.47
Accounts Payable (%)
Capital Expenditure	-19.40	-25.50	-28.50	-22.40	-32.60	-23.06	-22.03	-21.04	-20.09	-19.19
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 86.49
Beta	1.604
Diluted Shares Outstanding	41.96
Cost of Debt
Tax Rate	44.37
After-tax Cost of Debt	2.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.222
Total Debt	422.10
Total Equity	3,629.03
Total Capital	4,051.13
Debt Weighting	10.42
Equity Weighting	89.58
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,951.50	2,090.10	1,506.60	1,350.60	1,529	1,460.35	1,394.77	1,332.15	1,272.33	1,215.20
EBITDA	185.90	228.30	8.70	83.10	183.40	114.42	109.28	104.37	99.68	95.21
EBIT	124.70	169.60	-29.60	42	136.20	71.72	68.50	65.43	62.49	59.68
Tax Rate	19.86%	62.00%	211.23%	88.08%	44.37%	85.11%	85.11%	85.11%	85.11%	85.11%
EBIAT	99.93	64.44	32.92	5.01	75.77	10.68	10.20	9.74	9.31	8.89
Depreciation	61.20	58.70	38.30	41.10	47.20	42.69	40.77	38.94	37.19	35.52
Accounts Receivable	-	-5.90	174.60	13.40	-14.50	-16.26	12.92	12.34	11.79	11.26
Inventories	-	-10.90	96.70	8.80	-43.50	26.40	9.72	9.28	8.86	8.47
Accounts Payable	-	-15.70	-61.10	6.50	24.70	-19.41	-6.93	-6.62	-6.32	-6.04
Capital Expenditure	-19.40	-25.50	-28.50	-22.40	-32.60	-23.06	-22.03	-21.04	-20.09	-19.19
UFCF	141.73	65.14	252.92	52.41	57.07	21.04	44.65	42.65	40.73	38.90
WACC
PV UFCF						19.08	36.72	31.81	27.55	23.86
SUM PV UFCF										139.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.27
Free cash flow (t + 1)	39.68
Terminal Value	479.83
Present Value of Terminal Value	294.31

Intrinsic Value

Enterprise Value	433.33
Net Debt	108.20
Equity Value	325.13
Shares Outstanding	41.96
Equity Value Per Share	7.75