DCF Tool

ADT

ADT Inc – Investigation Services
ADT is a leading provider of security, automation, and smart home solutions serving consumer and business customers through more than 200 locations, 9 monitoring centers, and the largest network of security professionals in the United States. The company offers many ways to help protect customers by delivering lifestyle-driven solutions via professionally installed, do-it-yourself, mobile, and digital-based offerings for residential, small business, and larger commercial customers.
Analysis Results
Intrinsic Value $29.39
Latest Price $6.29
Relative Value 79% 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 -5.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -5.8%, 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)
2022 1.68 1.57
2023 1.58 1.38
2024 1.49 1.22
2025 1.4 1.08
2026 1.32 0.949
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 28.0 billion. This corresponds to a present value of 18.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.2 billion. Adding in the terminal value gives a total present value of 25.0 billion.

There are presently 852.0 million outstanding shares, so the intrinsic value per share is 29.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 992,531,000
Current Cash 24,453,000
Current Liabilities 1,703,345,000
Current Debt 117,592,000
Non-Cash Working Capital (NCWC) -617,675,000
Change in NCWC -128,743,000
EBIT 53,150,000
Tax Provision -130,369,000
Depreciation and Amortization 1,914,779,000
Capital Expenditure -168,238,000
Unlevered Free Cash Flow 1,670,948,000
Current Assets 967,394,000
Current Cash 204,998,000
Current Liabilities 1,296,092,000
Current Debt 44,764,000
Non-Cash Working Capital (NCWC) -488,932,000
Change in NCWC -4,000,000
EBIT 161,586,000
Tax Provision -146,726,000
Depreciation and Amortization 1,913,767,000
Capital Expenditure -157,191,000
Unlevered Free Cash Flow 1,914,162,000
Current Assets 625,483,000
Current Cash 48,736,000
Current Liabilities 1,119,728,000
Current Debt 58,049,000
Non-Cash Working Capital (NCWC) -484,932,000
Change in NCWC -21,466,000
EBIT 339,759,000
Tax Provision -98,042,000
Depreciation and Amortization 1,989,082,000
Capital Expenditure -158,846,000
Unlevered Free Cash Flow 2,148,529,000
Current Assets 854,017,000
Current Cash 363,177,000
Current Liabilities 1,012,490,000
Current Debt 58,184,000
Non-Cash Working Capital (NCWC) -463,466,000
Change in NCWC 51,739,000
EBIT 362,458,000
Tax Provision -23,463,000
Depreciation and Amortization 1,930,929,000
Capital Expenditure -126,799,000
Unlevered Free Cash Flow 2,218,327,000
Current Assets 455,886,000
Current Cash 122,899,000
Current Liabilities 896,252,000
Current Debt 48,060,000
Non-Cash Working Capital (NCWC) -515,205,000
Change in NCWC -15,419,000
EBIT 347,267,000
Tax Provision -764,313,000
Depreciation and Amortization 1,863,299,000
Capital Expenditure -130,624,000
Unlevered Free Cash Flow 2,064,523,000

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