Discounted Cash Flow (DCF) Analysis Unlevered

Hillenbrand, Inc. (HI)

$47.62

+1.05 (+2.25%)

All numbers are in Millions, Currency in USD

Stock DCF: 125.53 | 47.62 | 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	1,590.20	1,770.10	1,807.30	2,517	2,864.80	3,341.08	3,896.55	4,544.36	5,299.87	6,180.99
Revenue (%)
EBITDA	267.90	221.70	257.80	182.80	541.20	466.35	543.88	634.30	739.76	862.74
EBITDA (%)
EBIT	211.30	165.20	199.30	52.20	426.10	338.09	394.30	459.85	536.30	625.46
EBIT (%)
Depreciation	56.60	56.50	58.50	130.60	115.10	128.26	149.58	174.45	203.46	237.28
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	66	56	399	302.20	446.10	380.68	443.97	517.78	603.86	704.25
Total Cash (%)
Account Receivables	331.30	338.80	398.50	417.60	445.40	629.21	733.81	855.81	998.09	1,164.03
Account Receivables (%)
Inventories	151.60	172.50	176.60	385.40	411.60	392.44	457.68	533.78	622.52	726.01
Inventories (%)
Accounts Payable	158	196.80	236.20	271.60	361.30	384.39	448.30	522.83	609.75	711.13
Accounts Payable (%)
Capital Expenditure	-22	-27	-25.50	-35.90	-40	-47.73	-55.66	-64.91	-75.71	-88.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 47.62
Beta	1.380
Diluted Shares Outstanding	75.40
Cost of Debt
Tax Rate	29.37
After-tax Cost of Debt	4.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.362
Total Debt	1,318.50
Total Equity	3,590.55
Total Capital	4,909.05
Debt Weighting	26.86
Equity Weighting	73.14
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	1,590.20	1,770.10	1,807.30	2,517	2,864.80	3,341.08	3,896.55	4,544.36	5,299.87	6,180.99
EBITDA	267.90	221.70	257.80	182.80	541.20	466.35	543.88	634.30	739.76	862.74
EBIT	211.30	165.20	199.30	52.20	426.10	338.09	394.30	459.85	536.30	625.46
Tax Rate	32.98%	47.71%	31.30%	-224.86%	29.37%	-16.70%	-16.70%	-16.70%	-16.70%	-16.70%
EBIAT	141.61	86.38	136.93	169.58	300.97	394.55	460.15	536.65	625.87	729.92
Depreciation	56.60	56.50	58.50	130.60	115.10	128.26	149.58	174.45	203.46	237.28
Accounts Receivable	-	-7.50	-59.70	-19.10	-27.80	-183.81	-104.61	-122	-142.28	-165.94
Inventories	-	-20.90	-4.10	-208.80	-26.20	19.16	-65.24	-76.09	-88.74	-103.50
Accounts Payable	-	38.80	39.40	35.40	89.70	23.09	63.91	74.53	86.92	101.37
Capital Expenditure	-22	-27	-25.50	-35.90	-40	-47.73	-55.66	-64.91	-75.71	-88.29
UFCF	176.21	126.28	145.53	71.78	411.77	333.54	448.13	522.63	609.52	710.86
WACC
PV UFCF						308.95	384.48	415.34	448.68	484.69
SUM PV UFCF										2,042.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.96
Free cash flow (t + 1)	725.07
Terminal Value	12,165.65
Present Value of Terminal Value	8,295.09

Intrinsic Value

Enterprise Value	10,337.23
Net Debt	872.40
Equity Value	9,464.83
Shares Outstanding	75.40
Equity Value Per Share	125.53