Discounted Cash Flow (DCF) Analysis Unlevered

Matthews International Corporation (MATW)

$34.73

+0.22 (+0.64%)

All numbers are in Millions, Currency in USD

Stock DCF: 20.97 | 34.73 | overvalue

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	1,602.58	1,537.28	1,498.31	1,671.03	1,762.40	1,808.16	1,855.11	1,903.28	1,952.70	2,003.40
Revenue (%)
EBITDA	212.65	94.57	48.10	171.48	27.62	124.62	127.86	131.18	134.58	138.08
EBITDA (%)
EBIT	135.68	3.78	-70.96	37.97	-76.44	6.91	7.09	7.28	7.47	7.66
EBIT (%)
Depreciation	76.97	90.79	119.06	133.51	104.06	117.71	120.77	123.90	127.12	130.42
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	41.57	35.30	41.33	49.18	69.02	52.47	53.83	55.23	56.66	58.13
Total Cash (%)
Account Receivables	331.46	318.76	295.18	309.82	221.01	333.43	342.08	350.97	360.08	369.43
Account Receivables (%)
Inventories	180.45	180.27	175.10	189.09	225.44	212.57	218.09	223.75	229.56	235.52
Inventories (%)
Accounts Payable	70.04	74.56	82.92	112.72	121.36	102.66	105.32	108.06	110.86	113.74
Accounts Payable (%)
Capital Expenditure	-43.20	-37.69	-34.85	-34.31	-61.32	-47.03	-48.26	-49.51	-50.79	-52.11
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 34.73
Beta	1.133
Diluted Shares Outstanding	31.99
Cost of Debt
Tax Rate	4.27
After-tax Cost of Debt	3.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.729
Total Debt	872.88
Total Equity	1,110.91
Total Capital	1,983.79
Debt Weighting	44.00
Equity Weighting	56.00
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	1,602.58	1,537.28	1,498.31	1,671.03	1,762.40	1,808.16	1,855.11	1,903.28	1,952.70	2,003.40
EBITDA	212.65	94.57	48.10	171.48	27.62	124.62	127.86	131.18	134.58	138.08
EBIT	135.68	3.78	-70.96	37.97	-76.44	6.91	7.09	7.28	7.47	7.66
Tax Rate	-9.57%	0.25%	18.04%	68.48%	4.27%	16.29%	16.29%	16.29%	16.29%	16.29%
EBIAT	148.66	3.77	-58.16	11.97	-73.18	5.79	5.94	6.09	6.25	6.41
Depreciation	76.97	90.79	119.06	133.51	104.06	117.71	120.77	123.90	127.12	130.42
Accounts Receivable	-	12.71	23.57	-14.63	88.80	-112.41	-8.66	-8.88	-9.11	-9.35
Inventories	-	0.18	5.17	-13.99	-36.35	12.87	-5.52	-5.66	-5.81	-5.96
Accounts Payable	-	4.51	8.36	29.80	8.64	-18.70	2.67	2.73	2.81	2.88
Capital Expenditure	-43.20	-37.69	-34.85	-34.31	-61.32	-47.03	-48.26	-49.51	-50.79	-52.11
UFCF	182.44	74.27	63.16	112.35	30.64	-41.78	66.94	68.67	70.46	72.29
WACC
PV UFCF						-39.33	59.31	57.29	55.33	53.43
SUM PV UFCF										186.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.23
Free cash flow (t + 1)	73.73
Terminal Value	1,743.07
Present Value of Terminal Value	1,288.49

Intrinsic Value

Enterprise Value	1,474.51
Net Debt	803.87
Equity Value	670.65
Shares Outstanding	31.99
Equity Value Per Share	20.97