Discounted Cash Flow (DCF) Analysis Unlevered

Ingersoll Rand Inc. (IR)

$42.93

-0.39 (-0.90%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.85 | 42.93 | 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 2,375.402,689.802,451.904,910.205,152.406,563.968,362.2410,653.1713,571.7317,289.87
Revenue (%)
EBITDA 488.20951.80281591.701,050.501,310.661,669.732,127.172,709.933,452.35
EBITDA (%)
EBIT 314.40771.40102.9090.80628.40789.731,006.091,281.721,632.862,080.20
EBIT (%)
Depreciation 173.80180.40178.10500.90422.10520.93663.64845.451,077.071,372.15
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 393.30221.20505.501,750.902,109.601,601.612,040.392,599.373,311.504,218.73
Total Cash (%)
Account Receivables 536.30525.40459.10966.60948.601,298.761,654.572,107.862,685.333,421.01
Account Receivables (%)
Inventories 494.50523.90502.50943.60854.201,267.961,615.332,057.872,621.653,339.88
Inventories (%)
Accounts Payable 269.70340322.90671.10670.50838.141,067.761,360.291,732.962,207.72
Accounts Payable (%)
Capital Expenditure -56.80-52.20-43.20-48.70-64.10-109.35-139.31-177.47-226.10-288.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 42.93
Beta 1.490
Diluted Shares Outstanding 418.50
Cost of Debt
Tax Rate -9.65
After-tax Cost of Debt 2.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.996
Total Debt 3,475.50
Total Equity 17,966.21
Total Capital 21,441.71
Debt Weighting 16.21
Equity Weighting 83.79
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 2,375.402,689.802,451.904,910.205,152.406,563.968,362.2410,653.1713,571.7317,289.87
EBITDA 488.20951.80281591.701,050.501,310.661,669.732,127.172,709.933,452.35
EBIT 314.40771.40102.9090.80628.40789.731,006.091,281.721,632.862,080.20
Tax Rate 116.33%22.92%16.66%-71.65%-9.65%14.92%14.92%14.92%14.92%14.92%
EBIAT -51.33594.6185.76155.86689.04671.90855.971,090.471,389.221,769.82
Depreciation 173.80180.40178.10500.90422.10520.93663.64845.451,077.071,372.15
Accounts Receivable -10.9066.30-507.5018-350.16-355.81-453.29-577.47-735.68
Inventories --29.4021.40-441.1089.40-413.76-347.37-442.54-563.78-718.23
Accounts Payable -70.30-17.10348.20-0.60167.64229.62292.53372.67474.76
Capital Expenditure -56.80-52.20-43.20-48.70-64.10-109.35-139.31-177.47-226.10-288.04
UFCF 65.67774.61291.267.661,153.84487.20906.741,155.151,471.621,874.78
WACC
PV UFCF 444.44754.57876.941,019.141,184.41
SUM PV UFCF 4,279.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.62
Free cash flow (t + 1) 1,912.28
Terminal Value 25,095.53
Present Value of Terminal Value 15,854.31

Intrinsic Value

Enterprise Value 20,133.82
Net Debt 1,365.90
Equity Value 18,767.92
Shares Outstanding 418.50
Equity Value Per Share 44.85