Discounted Cash Flow (DCF) Analysis Unlevered
Oil-Dri Corporation of America (ODC)
$27.57
+0.39 (+1.43%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 266 | 277.03 | 283.23 | 304.98 | 319.28 | 334.25 | 349.92 | 366.32 | 383.49 | 401.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 28.32 | 28.47 | 37.62 | 28.40 | 34.73 | 36.36 | 38.07 | 39.85 | 41.72 | 43.68 |
| EBITDA (%) | ||||||||||
| EBIT | 15.56 | 15.14 | 23.70 | 14.22 | 19.43 | 20.34 | 21.30 | 22.30 | 23.34 | 24.43 |
| EBIT (%) | ||||||||||
| Depreciation | 12.76 | 13.33 | 13.92 | 14.18 | 15.30 | 16.02 | 16.77 | 17.56 | 18.38 | 19.24 |
| 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 | 19.88 | 21.86 | 40.89 | 24.59 | 22.82 | 30.09 | 31.50 | 32.98 | 34.53 | 36.14 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 33.60 | 35.46 | 34.91 | 40.92 | 43.29 | 43.27 | 45.30 | 47.43 | 49.65 | 51.98 |
| Account Receivables (%) | ||||||||||
| Inventories | 22.52 | 24.16 | 23.89 | 23.60 | 34.95 | 29.62 | 31.01 | 32.46 | 33.98 | 35.58 |
| Inventories (%) | ||||||||||
| Accounts Payable | 6.54 | 8.09 | 12.53 | 9.21 | 10.10 | 10.69 | 11.19 | 11.71 | 12.26 | 12.84 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -15.07 | -15.03 | -14.74 | -18.84 | -17.94 | -18.78 | -19.66 | -20.58 | -21.55 | -22.56 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 27.57 |
|---|---|
| Beta | 0.309 |
| Diluted Shares Outstanding | 5.25 |
| Cost of Debt | |
| Tax Rate | 16.87 |
| After-tax Cost of Debt | 4.16% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.247 |
| Total Debt | 33.79 |
| Total Equity | 144.83 |
| Total Capital | 178.61 |
| Debt Weighting | 18.92 |
| Equity Weighting | 81.08 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 266 | 277.03 | 283.23 | 304.98 | 319.28 | 334.25 | 349.92 | 366.32 | 383.49 | 401.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 28.32 | 28.47 | 37.62 | 28.40 | 34.73 | 36.36 | 38.07 | 39.85 | 41.72 | 43.68 |
| EBIT | 15.56 | 15.14 | 23.70 | 14.22 | 19.43 | 20.34 | 21.30 | 22.30 | 23.34 | 24.43 |
| Tax Rate | 44.57% | 13.31% | 17.90% | 16.87% | 23.16% | 23.16% | 23.16% | 23.16% | 23.16% | 23.16% |
| EBIAT | 8.62 | 13.12 | 19.46 | 11.82 | 14.93 | 15.63 | 16.36 | 17.13 | 17.93 | 18.77 |
| Depreciation | 12.76 | 13.33 | 13.92 | 14.18 | 15.30 | 16.02 | 16.77 | 17.56 | 18.38 | 19.24 |
| Accounts Receivable | - | -1.86 | 0.55 | -6.01 | -2.36 | 0.01 | -2.03 | -2.12 | -2.22 | -2.33 |
| Inventories | - | -1.64 | 0.27 | 0.30 | -11.35 | 5.33 | -1.39 | -1.45 | -1.52 | -1.59 |
| Accounts Payable | - | 1.55 | 4.44 | -3.32 | 0.89 | 0.59 | 0.50 | 0.52 | 0.55 | 0.57 |
| Capital Expenditure | -15.07 | -15.03 | -14.74 | -18.84 | -17.94 | -18.78 | -19.66 | -20.58 | -21.55 | -22.56 |
| UFCF | 6.31 | 9.47 | 23.89 | -1.88 | -0.53 | 18.80 | 10.56 | 11.05 | 11.57 | 12.11 |
| WACC | ||||||||||
| PV UFCF | -0.53 | 18.04 | 9.72 | 9.76 | 9.80 | 9.85 | ||||
| SUM PV UFCF | 57.17 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.23 |
| Free cash flow (t + 1) | 12.36 |
| Terminal Value | 554.12 |
| Present Value of Terminal Value | 450.45 |
Intrinsic Value
| Enterprise Value | 507.62 |
|---|---|
| Net Debt | 10.96 |
| Equity Value | 496.66 |
| Shares Outstanding | 5.25 |
| Equity Value Per Share | 94.55 |