Discounted Cash Flow (DCF) Analysis Unlevered
The Gorman-Rupp Company (GRC)
$25.95
+1.68 (+6.92%)
All numbers are in Millions, Currency in USD
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 | 414.33 | 398.18 | 348.97 | 378.32 | 521.03 | 559.94 | 601.76 | 646.70 | 695 | 746.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 64.80 | 58.91 | 43.94 | 49.16 | 54.27 | 74.40 | 79.96 | 85.93 | 92.35 | 99.25 |
| EBITDA (%) | ||||||||||
| EBIT | 50.32 | 45.17 | 31.25 | 37.25 | 33.11 | 54.47 | 58.54 | 62.91 | 67.61 | 72.66 |
| EBIT (%) | ||||||||||
| Depreciation | 14.48 | 13.75 | 12.69 | 11.91 | 21.16 | 19.93 | 21.42 | 23.02 | 24.74 | 26.58 |
| 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 | 46.46 | 80.56 | 108.20 | 125.19 | 6.78 | 108.45 | 116.55 | 125.26 | 134.61 | 144.67 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 67.71 | 65.43 | 50.76 | 58.54 | 93.06 | 90.33 | 97.07 | 104.32 | 112.12 | 120.49 |
| Account Receivables (%) | ||||||||||
| Inventories | 87.39 | 76 | 82.69 | 85.65 | 111.13 | 120.77 | 129.79 | 139.48 | 149.90 | 161.09 |
| Inventories (%) | ||||||||||
| Accounts Payable | 16.68 | 16.03 | 9.47 | 17.63 | 24.70 | 22.58 | 24.27 | 26.08 | 28.03 | 30.12 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -10.95 | -10.91 | -8 | -9.75 | -17.99 | -15.35 | -16.49 | -17.73 | -19.05 | -20.47 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 25.95 |
|---|---|
| Beta | 0.799 |
| Diluted Shares Outstanding | 26.17 |
| Cost of Debt | |
| Tax Rate | 19.30 |
| After-tax Cost of Debt | 3.55% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.461 |
| Total Debt | 436.83 |
| Total Equity | 679.16 |
| Total Capital | 1,115.99 |
| Debt Weighting | 39.14 |
| Equity Weighting | 60.86 |
| 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 | 414.33 | 398.18 | 348.97 | 378.32 | 521.03 | 559.94 | 601.76 | 646.70 | 695 | 746.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 64.80 | 58.91 | 43.94 | 49.16 | 54.27 | 74.40 | 79.96 | 85.93 | 92.35 | 99.25 |
| EBIT | 50.32 | 45.17 | 31.25 | 37.25 | 33.11 | 54.47 | 58.54 | 62.91 | 67.61 | 72.66 |
| Tax Rate | 20.54% | 20.70% | 19.39% | 19.86% | 19.30% | 19.96% | 19.96% | 19.96% | 19.96% | 19.96% |
| EBIAT | 39.98 | 35.81 | 25.19 | 29.85 | 26.72 | 43.60 | 46.86 | 50.36 | 54.12 | 58.16 |
| Depreciation | 14.48 | 13.75 | 12.69 | 11.91 | 21.16 | 19.93 | 21.42 | 23.02 | 24.74 | 26.58 |
| Accounts Receivable | - | 2.28 | 14.67 | -7.78 | -34.51 | 2.73 | -6.75 | -7.25 | -7.79 | -8.37 |
| Inventories | - | 11.39 | -6.69 | -2.96 | -25.49 | -9.64 | -9.02 | -9.69 | -10.42 | -11.20 |
| Accounts Payable | - | -0.65 | -6.56 | 8.17 | 7.06 | -2.11 | 1.69 | 1.81 | 1.95 | 2.09 |
| Capital Expenditure | -10.95 | -10.91 | -8 | -9.75 | -17.99 | -15.35 | -16.49 | -17.73 | -19.05 | -20.47 |
| UFCF | 43.52 | 51.68 | 31.30 | 29.44 | -23.04 | 39.16 | 37.70 | 40.52 | 43.54 | 46.80 |
| WACC | ||||||||||
| PV UFCF | 36.97 | 33.60 | 34.09 | 34.58 | 35.08 | |||||
| SUM PV UFCF | 174.32 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.93 |
| Free cash flow (t + 1) | 47.73 |
| Terminal Value | 1,214.56 |
| Present Value of Terminal Value | 910.59 |
Intrinsic Value
| Enterprise Value | 1,084.92 |
|---|---|
| Net Debt | 430.04 |
| Equity Value | 654.87 |
| Shares Outstanding | 26.17 |
| Equity Value Per Share | 25.02 |