Discounted Cash Flow (DCF) Analysis Unlevered

Pentair plc (PNR)

$51.35

-1.45 (-2.75%)

All numbers are in Millions, Currency in USD

Stock DCF: 65.90 | 51.35 | undervalue

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	2,965.10	2,957.20	3,017.80	3,764.80	4,121.80	4,492.95	4,897.53	5,338.53	5,819.25	6,343.25
Revenue (%)
EBITDA	522.70	511.60	532.60	713.80	666.50	788.13	859.10	936.45	1,020.78	1,112.70
EBITDA (%)
EBIT	438.10	431.60	457.50	636.30	612.40	685.53	747.26	814.54	887.89	967.84
EBIT (%)
Depreciation	84.60	80	75.10	77.50	54.10	102.60	111.84	121.91	132.89	144.86
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	74.30	82.50	82.10	94.50	108.90	118.33	128.98	140.60	153.26	167.06
Total Cash (%)
Account Receivables	524.70	543.90	417.60	583.10	531.50	703.68	767.04	836.11	911.40	993.47
Account Receivables (%)
Inventories	387.50	377.40	420	562.90	790	663.75	723.52	788.67	859.69	937.10
Inventories (%)
Accounts Payable	378.60	325.10	245.10	385.70	355	455.96	497.02	541.77	590.55	643.73
Accounts Payable (%)
Capital Expenditure	-48.20	-58.50	-62.20	-60.20	-85.20	-83.85	-91.40	-99.63	-108.60	-118.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 51.35
Beta	1.090
Diluted Shares Outstanding	165.60
Cost of Debt
Tax Rate	12.24
After-tax Cost of Debt	2.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.645
Total Debt	2,317.30
Total Equity	8,503.56
Total Capital	10,820.86
Debt Weighting	21.42
Equity Weighting	78.58
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	2,965.10	2,957.20	3,017.80	3,764.80	4,121.80	4,492.95	4,897.53	5,338.53	5,819.25	6,343.25
EBITDA	522.70	511.60	532.60	713.80	666.50	788.13	859.10	936.45	1,020.78	1,112.70
EBIT	438.10	431.60	457.50	636.30	612.40	685.53	747.26	814.54	887.89	967.84
Tax Rate	8.53%	12.71%	17.01%	11.77%	12.24%	12.45%	12.45%	12.45%	12.45%	12.45%
EBIAT	400.73	376.74	379.68	561.38	537.43	600.15	654.20	713.10	777.32	847.31
Depreciation	84.60	80	75.10	77.50	54.10	102.60	111.84	121.91	132.89	144.86
Accounts Receivable	-	-19.20	126.30	-165.50	51.60	-172.18	-63.36	-69.07	-75.29	-82.07
Inventories	-	10.10	-42.60	-142.90	-227.10	126.25	-59.77	-65.15	-71.02	-77.41
Accounts Payable	-	-53.50	-80	140.60	-30.70	100.96	41.06	44.75	48.78	53.18
Capital Expenditure	-48.20	-58.50	-62.20	-60.20	-85.20	-83.85	-91.40	-99.63	-108.60	-118.38
UFCF	437.13	335.64	396.28	410.88	300.13	673.93	592.56	645.92	704.08	767.49
WACC
PV UFCF						628.08	514.68	522.85	531.16	539.60
SUM PV UFCF										2,736.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.30
Free cash flow (t + 1)	782.83
Terminal Value	14,770.47
Present Value of Terminal Value	10,384.74

Intrinsic Value

Enterprise Value	13,121.11
Net Debt	2,208.40
Equity Value	10,912.71
Shares Outstanding	165.60
Equity Value Per Share	65.90