Discounted Cash Flow (DCF) Analysis Unlevered

International Flavors & Fragrances ... (IFFT)

$47.56

-1.32 (-%)
All numbers are in Millions, Currency in USD
Stock DCF: 142.62 | 47.56 | undervalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 3,116.353,398.723,977.545,140.085,084.245,773.576,556.367,445.288,454.739,601.03
Revenue (%)
EBITDA 679.18720.38754.111,014.61896.191,146.801,302.281,478.851,679.351,907.04
EBITDA (%)
EBIT 576.71602.41580.31691.28570.83871.77989.961,124.181,276.601,449.69
EBIT (%)
Depreciation 102.47117.97173.79323.33325.36275.03312.32354.67402.75457.36
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 314354.65639.35615.71649.54708.29804.32913.371,037.211,177.84
Total Cash (%)
Account Receivables 560.65677.06946.94884.431,121.821,166.141,324.251,503.801,707.681,939.21
Account Receivables (%)
Inventories 592.02649.451,078.541,123.071,131.861,262.481,433.651,628.031,848.762,099.41
Inventories (%)
Accounts Payable 274.82338.19471.38510.37555.69594.43675.03766.55870.48988.50
Accounts Payable (%)
Capital Expenditure -126.41-128.97-173.42-242.05-191.79-238.94-271.33-308.12-349.90-397.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 47.56
Beta 0.973
Diluted Shares Outstanding 112.13
Cost of Debt
Tax Rate 17.30
After-tax Cost of Debt 2.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.112
Total Debt 4,457.14
Total Equity 5,332.90
Total Capital 9,790.04
Debt Weighting 45.53
Equity Weighting 54.47
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 3,116.353,398.723,977.545,140.085,084.245,773.576,556.367,445.288,454.739,601.03
EBITDA 679.18720.38754.111,014.61896.191,146.801,302.281,478.851,679.351,907.04
EBIT 576.71602.41580.31691.28570.83871.77989.961,124.181,276.601,449.69
Tax Rate 22.66%44.95%24.11%18.22%17.30%25.45%25.45%25.45%25.45%25.45%
EBIAT 446.01331.65440.37565.31472.10649.92738.04838.10951.731,080.77
Depreciation 102.47117.97173.79323.33325.36275.03312.32354.67402.75457.36
Accounts Receivable --116.40-269.8862.51-237.39-44.33-158.11-179.54-203.89-231.53
Inventories --57.43-429.09-44.53-8.79-130.62-171.17-194.38-220.73-250.66
Accounts Payable -63.37133.1938.9945.3138.7580.5991.52103.93118.02
Capital Expenditure -126.41-128.97-173.42-242.05-191.79-238.94-271.33-308.12-349.90-397.34
UFCF 422.07210.18-125.03703.56404.81549.81530.34602.24683.90776.62
WACC
PV UFCF 521476.21512.44551.42593.37
SUM PV UFCF 2,654.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.53
Free cash flow (t + 1) 792.15
Terminal Value 22,440.55
Present Value of Terminal Value 17,145.64

Intrinsic Value

Enterprise Value 19,800.09
Net Debt 3,807.60
Equity Value 15,992.49
Shares Outstanding 112.13
Equity Value Per Share 142.62