Discounted Cash Flow (DCF) Analysis Unlevered

The Toro Company (TTC)

$109.78

-0.18 (-0.16%)
All numbers are in Millions, Currency in USD
Stock DCF: 103.17 | 109.78 | 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 2,505.182,618.653,138.083,378.813,959.584,446.864,994.115,608.706,298.937,074.10
Revenue (%)
EBITDA 437.28452.77438.67535.84627.79715.39803.43902.311,013.351,138.05
EBITDA (%)
EBIT 372.30391.49350.97440.23528.48599.18672.92755.73848.73953.18
EBIT (%)
Depreciation 64.9961.2887.7095.6199.32116.21130.51146.58164.61184.87
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 310.26289.12151.83479.89405.61468.79526.48591.28664.04745.76
Total Cash (%)
Account Receivables 183.07193.18268.77261.14310.28345.20387.69435.40488.98549.15
Account Receivables (%)
Inventories 328.99358.26651.66652.43738.17760.70854.31959.451,077.521,210.12
Inventories (%)
Accounts Payable 211.75256.58319.23363.95503.12461.60518.40582.20653.84734.31
Accounts Payable (%)
Capital Expenditure -58.28-90.12-92.88-78.07-104.01-121.53-136.49-153.29-172.15-193.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 109.78
Beta 0.767
Diluted Shares Outstanding 108.47
Cost of Debt
Tax Rate 17.99
After-tax Cost of Debt 3.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.136
Total Debt 761.28
Total Equity 11,908.17
Total Capital 12,669.44
Debt Weighting 6.01
Equity Weighting 93.99
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 2,505.182,618.653,138.083,378.813,959.584,446.864,994.115,608.706,298.937,074.10
EBITDA 437.28452.77438.67535.84627.79715.39803.43902.311,013.351,138.05
EBIT 372.30391.49350.97440.23528.48599.18672.92755.73848.73953.18
Tax Rate 24.20%26.98%14.95%19.01%17.99%20.62%20.62%20.62%20.62%20.62%
EBIAT 282.20285.88298.51356.56433.38475.60534.13599.86673.69756.59
Depreciation 64.9961.2887.7095.6199.32116.21130.51146.58164.61184.87
Accounts Receivable --10.10-75.597.63-49.14-34.92-42.48-47.71-53.58-60.18
Inventories --29.27-293.40-0.77-85.74-22.53-93.61-105.13-118.07-132.60
Accounts Payable -44.8262.6544.72139.16-41.5256.8163.8071.6580.46
Capital Expenditure -58.28-90.12-92.88-78.07-104.01-121.53-136.49-153.29-172.15-193.34
UFCF 288.91262.49-13.01425.69432.97371.31448.87504.11566.14635.81
WACC
PV UFCF 347.38392.87412.77433.69455.66
SUM PV UFCF 2,042.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.89
Free cash flow (t + 1) 648.53
Terminal Value 13,262.39
Present Value of Terminal Value 9,504.66

Intrinsic Value

Enterprise Value 11,547.02
Net Debt 355.67
Equity Value 11,191.36
Shares Outstanding 108.47
Equity Value Per Share 103.17