Discounted Cash Flow (DCF) Analysis Unlevered

Flowserve Corporation (FLS)

$33.97

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 16.12 | 33.97 | 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	3,832.67	3,944.85	3,728.13	3,541.06	3,615.12	3,565.48	3,516.51	3,468.22	3,420.59	3,373.62
Revenue (%)
EBITDA	341.53	493.20	334.50	280.79	282.25	328.90	324.38	319.93	315.53	311.20
EBITDA (%)
EBIT	229.05	388.72	233.74	180.97	191.30	231.77	228.59	225.45	222.35	219.30
EBIT (%)
Depreciation	112.47	104.48	100.75	99.82	90.95	97.13	95.79	94.48	93.18	91.90
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	619.68	670.98	1,095.27	658.45	434.97	664.48	655.36	646.36	637.48	628.73
Total Cash (%)
Account Receivables	1,021.01	1,068.45	1,031.20	934.81	1,102.09	985.99	972.45	959.09	945.92	932.93
Account Receivables (%)
Inventories	633.87	660.84	667.23	678.29	803.20	660.04	650.98	642.04	633.22	624.53
Inventories (%)
Accounts Payable	418.89	447.58	440.20	410.06	476.75	419.66	413.90	408.22	402.61	397.08
Accounts Payable (%)
Capital Expenditure	-83.99	-66.17	-57.40	-54.94	-76.29	-64.68	-63.79	-62.92	-62.05	-61.20
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 33.97
Beta	1.625
Diluted Shares Outstanding	131.31
Cost of Debt
Tax Rate	-22.23
After-tax Cost of Debt	3.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.371
Total Debt	1,461.21
Total Equity	4,460.77
Total Capital	5,921.98
Debt Weighting	24.67
Equity Weighting	75.33
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	3,832.67	3,944.85	3,728.13	3,541.06	3,615.12	3,565.48	3,516.51	3,468.22	3,420.59	3,373.62
EBITDA	341.53	493.20	334.50	280.79	282.25	328.90	324.38	319.93	315.53	311.20
EBIT	229.05	388.72	233.74	180.97	191.30	231.77	228.59	225.45	222.35	219.30
Tax Rate	32.11%	25.80%	37.73%	5.72%	-22.23%	15.83%	15.83%	15.83%	15.83%	15.83%
EBIAT	155.50	288.45	145.55	170.62	233.82	195.09	192.41	189.77	187.16	184.59
Depreciation	112.47	104.48	100.75	99.82	90.95	97.13	95.79	94.48	93.18	91.90
Accounts Receivable	-	-47.44	37.26	96.39	-167.28	116.10	13.54	13.35	13.17	12.99
Inventories	-	-26.97	-6.39	-11.06	-124.91	143.16	9.06	8.94	8.82	8.70
Accounts Payable	-	28.69	-7.38	-30.14	66.68	-57.08	-5.76	-5.68	-5.61	-5.53
Capital Expenditure	-83.99	-66.17	-57.41	-54.94	-76.29	-64.68	-63.79	-62.92	-62.05	-61.20
UFCF	183.98	281.04	212.38	270.70	22.98	429.71	241.26	237.94	234.68	231.45
WACC
PV UFCF						392.97	201.76	181.98	164.13	148.04
SUM PV UFCF										1,088.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.35
Free cash flow (t + 1)	236.08
Terminal Value	3,211.99
Present Value of Terminal Value	2,054.38

Intrinsic Value

Enterprise Value	3,143.25
Net Debt	1,026.24
Equity Value	2,117.02
Shares Outstanding	131.31
Equity Value Per Share	16.12