DCF Tool

ABM

ABM Industries Inc. – Janitorial Services
ABM Industries Inc. is a facility management provider in the United States. ABM was founded in 1909 by Morris Rosenberg in San Francisco, California, as a single-person window washing business. As of 2013, the company has over 130,000 employees, over 350 offices, and various international locations.
Analysis Results
Intrinsic Value $290.96
Latest Price $41.54
Relative Value 86% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 20.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 0.64 0.593
2025 0.771 0.662
2026 0.928 0.738
2027 1.12 0.823
2028 1.34 0.918
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.2 billion. This corresponds to a present value of 14.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.73 billion. Adding in the terminal value gives a total present value of 18.4 billion.

There are presently 63.3 million outstanding shares, so the intrinsic value per share is 290.96.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,710,800,000
Current Cash 69,500,000
Current Liabilities 1,217,900,000
Current Debt 31,500,000
Non-Cash Working Capital (NCWC) 454,900,000
Change in NCWC 138,300,000
EBIT 413,400,000
Tax Provision 79,700,000
Depreciation and Amortization 120,700,000
Capital Expenditure -52,600,000
Unlevered Free Cash Flow 520,289,338
Current Assets 1,561,200,000
Current Cash 73,000,000
Current Liabilities 1,353,100,000
Current Debt 181,500,000
Non-Cash Working Capital (NCWC) 316,600,000
Change in NCWC 232,600,000
EBIT 351,100,000
Tax Provision 79,600,000
Depreciation and Amortization 112,400,000
Capital Expenditure -50,800,000
Unlevered Free Cash Flow 555,146,580
Current Assets 1,401,100,000
Current Cash 62,800,000
Current Liabilities 1,285,700,000
Current Debt 31,400,000
Non-Cash Working Capital (NCWC) 84,000,000
Change in NCWC -93,600,000
EBIT 208,300,000
Tax Provision 53,500,000
Depreciation and Amortization 89,900,000
Capital Expenditure -34,300,000
Unlevered Free Cash Flow 108,285,253
Current Assets 1,441,900,000
Current Cash 394,200,000
Current Liabilities 986,800,000
Current Debt 116,700,000
Non-Cash Working Capital (NCWC) 177,600,000
Change in NCWC -194,300,000
EBIT 278,300,000
Tax Provision 53,000,000
Depreciation and Amortization 96,400,000
Capital Expenditure -38,000,000
Unlevered Free Cash Flow -134,333,583
Current Assets 1,275,500,000
Current Cash 58,500,000
Current Liabilities 902,300,000
Current Debt 57,200,000
Non-Cash Working Capital (NCWC) 371,900,000
Change in NCWC -4,600,000
EBIT 222,700,000
Tax Provision 32,700,000
Depreciation and Amortization 107,400,000
Capital Expenditure -59,600,000
Unlevered Free Cash Flow 220,499,189
Current Assets 1,171,000,000
Current Cash 39,100,000
Current Liabilities 792,400,000
Current Debt 37,000,000
Non-Cash Working Capital (NCWC) 376,500,000
Change in NCWC -55,300,000
EBIT 194,000,000
Tax Provision -8,200,000
Depreciation and Amortization 112,500,000
Capital Expenditure -50,900,000
Unlevered Free Cash Flow 200,300,000
Current Assets 1,235,500,000
Current Cash 62,800,000
Current Liabilities 757,800,000
Current Debt 16,900,000
Non-Cash Working Capital (NCWC) 431,800,000
Change in NCWC 93,300,000
EBIT 108,400,000
Tax Provision 8,800,000
Depreciation and Amortization 70,100,000
Capital Expenditure -57,200,000
Unlevered Free Cash Flow 203,610,138
Current Assets 993,700,000
Current Cash 56,000,000
Current Liabilities 599,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 338,500,000
Change in NCWC 15,000,000
EBIT 113,800,000
Tax Provision -10,400,000
Depreciation and Amortization 57,500,000
Capital Expenditure -44,000,000
Unlevered Free Cash Flow 142,300,000
Current Assets 947,200,000
Current Cash 55,500,000
Current Liabilities 568,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 323,500,000
Change in NCWC -40,600,000
EBIT 82,600,000
Tax Provision 18,300,000
Depreciation and Amortization 57,000,000
Capital Expenditure -26,500,000
Unlevered Free Cash Flow 51,621,823
Current Assets 927,200,000
Current Cash 36,700,000
Current Liabilities 526,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 364,100,000
Change in NCWC 40,631,000
EBIT 135,100,000
Tax Provision 48,800,000
Depreciation and Amortization 57,300,000
Capital Expenditure -37,400,000
Unlevered Free Cash Flow 142,633,572
Current Assets 864,632,000
Current Cash 32,639,000
Current Liabilities 508,524,000
Current Debt 0
Non-Cash Working Capital (NCWC) 323,469,000
Change in NCWC 73,411,000
EBIT 125,344,000
Tax Provision 39,552,000
Depreciation and Amortization 60,390,000
Capital Expenditure -32,593,000
Unlevered Free Cash Flow 182,465,581
Current Assets 767,427,000
Current Cash 43,459,000
Current Liabilities 473,910,000
Current Debt 0
Non-Cash Working Capital (NCWC) 250,058,000
Change in NCWC -14,036,000
EBIT 102,961,000
Tax Provision 29,931,000
Depreciation and Amortization 50,897,000
Capital Expenditure -28,052,000
Unlevered Free Cash Flow 78,507,625

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