Discounted Cash Flow (DCF) Analysis Unlevered

FMC Corporation (FMC)

$64.85

-0.30 (-0.46%)

All numbers are in Millions, Currency in USD

Stock DCF: 104.43 | 64.85 | undervalue

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	4,285.30	4,609.80	4,642.10	5,045.20	5,802.30	6,265.95	6,766.64	7,307.35	7,891.26	8,521.83
Revenue (%)
EBITDA	802.70	984.50	1,013.20	1,132.90	1,228.80	1,322.71	1,428.40	1,542.54	1,665.80	1,798.91
EBITDA (%)
EBIT	634.50	834.40	850.50	962	1,059.40	1,109.75	1,198.43	1,294.20	1,397.61	1,509.29
EBIT (%)
Depreciation	168.20	150.10	162.70	170.90	169.40	212.95	229.97	248.35	268.19	289.62
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	190.80	339.10	568.90	516.80	572	553.47	597.70	645.46	697.04	752.74
Total Cash (%)
Account Receivables	2,507.70	2,231.20	2,330.30	2,583.70	2,871.40	3,230.94	3,489.12	3,767.92	4,069.01	4,394.15
Account Receivables (%)
Inventories	1,097.30	1,017	1,095.60	1,405.70	1,651.60	1,599.02	1,726.79	1,864.78	2,013.79	2,174.70
Inventories (%)
Accounts Payable	867.50	900.10	946.70	1,135	1,252.20	1,306.34	1,410.72	1,523.45	1,645.18	1,776.65
Accounts Payable (%)
Capital Expenditure	-156.60	-93.90	-67.20	-100.10	-142.30	-145.06	-156.65	-169.17	-182.69	-197.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 64.85
Beta	0.823
Diluted Shares Outstanding	126.71
Cost of Debt
Tax Rate	25.14
After-tax Cost of Debt	3.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.621
Total Debt	3,274
Total Equity	8,216.95
Total Capital	11,490.95
Debt Weighting	28.49
Equity Weighting	71.51
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	4,285.30	4,609.80	4,642.10	5,045.20	5,802.30	6,265.95	6,766.64	7,307.35	7,891.26	8,521.83
EBITDA	802.70	984.50	1,013.20	1,132.90	1,228.80	1,322.71	1,428.40	1,542.54	1,665.80	1,798.91
EBIT	634.50	834.40	850.50	962	1,059.40	1,109.75	1,198.43	1,294.20	1,397.61	1,509.29
Tax Rate	17.47%	27.11%	24.43%	17.60%	25.14%	22.35%	22.35%	22.35%	22.35%	22.35%
EBIAT	523.64	608.16	642.71	792.70	793.02	861.70	930.55	1,004.91	1,085.21	1,171.93
Depreciation	168.20	150.10	162.70	170.90	169.40	212.95	229.97	248.35	268.19	289.62
Accounts Receivable	-	276.50	-99.10	-253.40	-287.70	-359.54	-258.18	-278.81	-301.09	-325.14
Inventories	-	80.30	-78.60	-310.10	-245.90	52.58	-127.77	-137.98	-149.01	-160.92
Accounts Payable	-	32.60	46.60	188.30	117.20	54.14	104.39	112.73	121.74	131.46
Capital Expenditure	-156.60	-93.90	-67.20	-100.10	-142.30	-145.06	-156.65	-169.17	-182.69	-197.29
UFCF	535.24	1,053.76	607.11	488.30	403.72	676.77	722.31	780.02	842.35	909.66
WACC
PV UFCF						631.61	629.12	634.06	639.04	644.05
SUM PV UFCF										3,177.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.15
Free cash flow (t + 1)	927.86
Terminal Value	18,016.64
Present Value of Terminal Value	12,755.95

Intrinsic Value

Enterprise Value	15,933.83
Net Debt	2,702
Equity Value	13,231.83
Shares Outstanding	126.71
Equity Value Per Share	104.43