Discounted Cash Flow (DCF) Analysis Unlevered

Tennant Company (TNC)

$101.67

-0.19 (-0.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 67.23 | 101.67 | 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 1,123.511,137.601,0011,090.801,092.201,087.681,083.181,078.701,074.241,069.80
Revenue (%)
EBITDA 114.70130.20120.50136.70132.80127.01126.48125.96125.44124.92
EBITDA (%)
EBIT 60.2875.8067.1083.6084.1074.1773.8773.5673.2672.95
EBIT (%)
Depreciation 54.4254.4053.4053.1048.7052.8352.6252.4052.1851.97
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 85.6174.60141123.6077.40101.55101.13100.71100.2999.88
Total Cash (%)
Account Receivables 216.17223.30199.90211.40251.50220.25219.34218.43217.53216.63
Account Receivables (%)
Inventories 135.13150.10127.70160.60206.60155.80155.15154.51153.87153.24
Inventories (%)
Accounts Payable 98.4094.10106.30121.50126.10109.49109.04108.59108.14107.69
Accounts Payable (%)
Capital Expenditure -21.55-38.90-30-23.20-29.30-28.59-28.48-28.36-28.24-28.12
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 101.67
Beta 1.062
Diluted Shares Outstanding 18.70
Cost of Debt
Tax Rate 16.60
After-tax Cost of Debt 3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.338
Total Debt 317.40
Total Equity 1,900.95
Total Capital 2,218.35
Debt Weighting 14.31
Equity Weighting 85.69
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 1,123.511,137.601,0011,090.801,092.201,087.681,083.181,078.701,074.241,069.80
EBITDA 114.70130.20120.50136.70132.80127.01126.48125.96125.44124.92
EBIT 60.2875.8067.1083.6084.1074.1773.8773.5673.2672.95
Tax Rate 6.78%15.19%18.00%12.42%16.60%13.80%13.80%13.80%13.80%13.80%
EBIAT 56.2064.2955.0273.2270.1463.9463.6763.4163.1562.89
Depreciation 54.4254.4053.4053.1048.7052.8352.6252.4052.1851.97
Accounts Receivable --7.1323.40-11.50-40.1031.250.910.910.900.90
Inventories --14.9722.40-32.90-4650.800.640.640.640.64
Accounts Payable --4.3012.2015.204.60-16.61-0.45-0.45-0.45-0.45
Capital Expenditure -21.55-38.90-30-23.20-29.30-28.59-28.48-28.36-28.24-28.12
UFCF 89.0653.39136.4273.928.04153.6388.9188.5588.1887.82
WACC
PV UFCF 141.5675.5069.2963.5858.35
SUM PV UFCF 408.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.52
Free cash flow (t + 1) 90.45
Terminal Value 1,638.60
Present Value of Terminal Value 1,088.74

Intrinsic Value

Enterprise Value 1,497.02
Net Debt 240
Equity Value 1,257.02
Shares Outstanding 18.70
Equity Value Per Share 67.23