Discounted Cash Flow (DCF) Analysis Unlevered

Stepan Company (SCL)

$110.66

-0.67 (-0.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.55 | 110.66 | overvalue

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 1,925.011,993.861,858.741,869.752,345.972,480.052,621.792,771.642,930.053,097.52
Revenue (%)
EBITDA 231.81233.65216.28259.62263.32300.12317.27335.40354.57374.84
EBITDA (%)
EBIT 152.79152.53137.58177.76172.45197.64208.94220.88233.51246.85
EBIT (%)
Depreciation 79.0281.1278.7081.8690.88102.47108.33114.52121.07127.98
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 298.89300.19315.38380.59159.19370.47391.65414.03437.70462.71
Total Cash (%)
Account Receivables 293.54280.02276.84275.40345.54365.29386.17408.24431.57456.24
Account Receivables (%)
Inventories 172.75200.16203.65218.78244.39258.36273.13288.74305.24322.69
Inventories (%)
Accounts Payable 204.98205.95194.28236.75258.59273.37289305.52322.98341.44
Accounts Payable (%)
Capital Expenditure -78.61-86.65-105.57-125.79-388.96-185.59-196.20-207.41-219.27-231.80
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 110.66
Beta 0.805
Diluted Shares Outstanding 23.22
Cost of Debt
Tax Rate 20.13
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.311
Total Debt 322.86
Total Equity 2,569.41
Total Capital 2,892.28
Debt Weighting 11.16
Equity Weighting 88.84
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 1,925.011,993.861,858.741,869.752,345.972,480.052,621.792,771.642,930.053,097.52
EBITDA 231.81233.65216.28259.62263.32300.12317.27335.40354.57374.84
EBIT 152.79152.53137.58177.76172.45197.64208.94220.88233.51246.85
Tax Rate 34.23%19.41%18.09%25.89%20.13%23.55%23.55%23.55%23.55%23.55%
EBIAT 100.49122.93112.69131.73137.73151.10159.73168.86178.51188.72
Depreciation 79.0281.1278.7081.8690.88102.47108.33114.52121.07127.98
Accounts Receivable -13.523.181.44-70.14-19.75-20.88-22.07-23.33-24.67
Inventories --27.42-3.48-15.14-25.61-13.97-14.77-15.61-16.50-17.45
Accounts Payable -0.98-11.6842.4721.8414.7815.6216.5217.4618.46
Capital Expenditure -78.61-86.65-105.57-125.79-388.96-185.59-196.20-207.41-219.27-231.80
UFCF 100.90104.4773.85116.58-234.2649.0451.8454.8157.9461.25
WACC
PV UFCF 45.8645.3344.8144.3043.79
SUM PV UFCF 224.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.94
Free cash flow (t + 1) 62.47
Terminal Value 1,264.67
Present Value of Terminal Value 904.22

Intrinsic Value

Enterprise Value 1,128.32
Net Debt 163.68
Equity Value 964.64
Shares Outstanding 23.22
Equity Value Per Share 41.55