Discounted Cash Flow (DCF) Analysis Unlevered

FMC Corporation (FMC)

$117.495

+0.73 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 238.71 | 117.495 | undervalue

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	2,878.60	4,727.80	4,609.80	4,642.10	5,045.20	5,942.34	6,999	8,243.56	9,709.43	11,435.96
Revenue (%)
EBITDA	992.90	893.60	899.40	1,016.40	1,130.10	1,392.87	1,640.55	1,932.27	2,275.87	2,680.56
EBITDA (%)
EBIT	879.90	725.40	749.30	853.70	959.20	1,183.32	1,393.74	1,641.58	1,933.48	2,277.29
EBIT (%)
Depreciation	113	168.20	150.10	162.70	170.90	209.55	246.81	290.69	342.38	403.27
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	283	190.80	339.10	568.90	516.80	519.62	612.01	720.84	849.02	1,000
Total Cash (%)
Account Receivables	2,174	2,507.70	2,460.40	2,528	2,809.90	3,471.40	4,088.68	4,815.73	5,672.06	6,680.67
Account Receivables (%)
Inventories	992.50	1,097.30	1,017	1,095.60	1,405.70	1,559.43	1,836.72	2,163.33	2,548.01	3,001.10
Inventories (%)
Accounts Payable	714.20	867.50	900.10	946.70	1,135	1,254.73	1,477.85	1,740.64	2,050.16	2,414.72
Accounts Payable (%)
Capital Expenditure	-85.70	-205.10	-141.90	-114.40	-100.10	-176.39	-207.76	-244.70	-288.21	-339.47
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 117.495
Beta	0.875
Diluted Shares Outstanding	130.60
Cost of Debt
Tax Rate	17.60
After-tax Cost of Debt	3.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.005
Total Debt	3,336
Total Equity	15,344.85
Total Capital	18,680.85
Debt Weighting	17.86
Equity Weighting	82.14
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	2,878.60	4,727.80	4,609.80	4,642.10	5,045.20	5,942.34	6,999	8,243.56	9,709.43	11,435.96
EBITDA	992.90	893.60	899.40	1,016.40	1,130.10	1,392.87	1,640.55	1,932.27	2,275.87	2,680.56
EBIT	879.90	725.40	749.30	853.70	959.20	1,183.32	1,393.74	1,641.58	1,933.48	2,277.29
Tax Rate	-196.35%	32.49%	27.11%	24.43%	17.60%	-18.94%	-18.94%	-18.94%	-18.94%	-18.94%
EBIAT	2,607.58	489.74	546.13	645.13	790.39	1,407.49	1,657.77	1,952.55	2,299.76	2,708.70
Depreciation	113	168.20	150.10	162.70	170.90	209.55	246.81	290.69	342.38	403.27
Accounts Receivable	-	-333.70	47.30	-67.60	-281.90	-661.50	-617.28	-727.05	-856.33	-1,008.61
Inventories	-	-104.80	80.30	-78.60	-310.10	-153.73	-277.30	-326.61	-384.68	-453.09
Accounts Payable	-	153.30	32.60	46.60	188.30	119.73	223.12	262.79	309.52	364.56
Capital Expenditure	-85.70	-205.10	-141.90	-114.40	-100.10	-176.39	-207.76	-244.70	-288.21	-339.47
UFCF	2,634.88	167.64	714.53	593.83	457.49	745.15	1,025.35	1,207.68	1,422.43	1,675.37
WACC
PV UFCF						700.79	906.91	1,004.58	1,112.78	1,232.63
SUM PV UFCF										4,957.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.33
Free cash flow (t + 1)	1,708.88
Terminal Value	39,465.94
Present Value of Terminal Value	29,036.44

Intrinsic Value

Enterprise Value	33,994.12
Net Debt	2,819.20
Equity Value	31,174.92
Shares Outstanding	130.60
Equity Value Per Share	238.71