DCF Tool

AIT

Applied Industrial Technologies Inc. – Industrial Machinery and Equipment Merchant Wholesalers
Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. AppliedĀ® leading brands, specialized services, and comprehensive knowledge serve MRO and OEM end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise.
Analysis Results
Intrinsic Value $315.95
Latest Price $102.78
Relative Value 67% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 13.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.5%, 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 (million) Present value (million)
2023 472 439
2024 536 465
2025 608 491
2026 691 520
2027 784 549
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14900 million. This corresponds to a present value of 9720 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2460 million. Adding in the terminal value gives a total present value of 12200 million.

There are presently 38.6 million outstanding shares, so the intrinsic value per share is 315.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,359,529,000
Current Cash 184,474,000
Current Liabilities 499,627,000
Current Debt 40,174,000
Non-Cash Working Capital (NCWC) 715,602,000
Change in NCWC 160,947,000
EBIT 357,858,000
Tax Provision 72,376,000
Depreciation and Amortization 53,555,000
Capital Expenditure -18,124,000
Unlevered Free Cash Flow 475,700,172
Current Assets 1,196,575,000
Current Cash 257,745,000
Current Liabilities 427,700,000
Current Debt 43,525,000
Non-Cash Working Capital (NCWC) 554,655,000
Change in NCWC 10,874,000
EBIT 254,982,000
Tax Provision 32,305,000
Depreciation and Amortization 55,145,000
Capital Expenditure -15,852,000
Unlevered Free Cash Flow 258,627,479
Current Assets 1,159,769,000
Current Cash 268,551,000
Current Liabilities 426,083,000
Current Debt 78,646,000
Non-Cash Working Capital (NCWC) 543,781,000
Change in NCWC -121,380,000
EBIT 219,989,000
Tax Provision 31,194,000
Depreciation and Amortization 62,749,000
Capital Expenditure -20,115,000
Unlevered Free Cash Flow 17,006,327
Current Assets 1,148,138,000
Current Cash 108,219,000
Current Liabilities 423,794,000
Current Debt 49,036,000
Non-Cash Working Capital (NCWC) 665,161,000
Change in NCWC 74,659,000
EBIT 265,382,000
Tax Provision 50,488,000
Depreciation and Amortization 62,119,000
Capital Expenditure -18,970,000
Unlevered Free Cash Flow 314,295,833
Current Assets 1,058,020,000
Current Cash 54,150,000
Current Liabilities 432,551,000
Current Debt 19,183,000
Non-Cash Working Capital (NCWC) 590,502,000
Change in NCWC 117,956,000
EBIT 225,827,000
Tax Provision 63,093,000
Depreciation and Amortization 49,863,000
Capital Expenditure -23,230,000
Unlevered Free Cash Flow 300,817,318
Current Assets 882,542,000
Current Cash 105,057,000
Current Liabilities 309,753,000
Current Debt 4,814,000
Non-Cash Working Capital (NCWC) 472,546,000
Change in NCWC 21,817,000
EBIT 174,590,000
Tax Provision 33,056,000
Depreciation and Amortization 39,677,000
Capital Expenditure -17,045,000
Unlevered Free Cash Flow 184,473,597
Current Assets 781,626,000
Current Cash 59,861,000
Current Liabilities 274,388,000
Current Debt 3,352,000
Non-Cash Working Capital (NCWC) 450,729,000
Change in NCWC -32,383,000
EBIT 153,595,000
Tax Provision 49,401,000
Depreciation and Amortization 41,546,000
Capital Expenditure -13,130,000
Unlevered Free Cash Flow 53,553,819
Current Assets 859,305,000
Current Cash 69,470,000
Current Liabilities 310,072,000
Current Debt 3,349,000
Non-Cash Working Capital (NCWC) 483,112,000
Change in NCWC 6,388,000
EBIT 184,619,000
Tax Provision 60,387,000
Depreciation and Amortization 42,375,000
Capital Expenditure -14,933,000
Unlevered Free Cash Flow 155,058,290
Current Assets 836,148,000
Current Cash 71,189,000
Current Liabilities 290,955,000
Current Debt 2,720,000
Non-Cash Working Capital (NCWC) 476,724,000
Change in NCWC 58,508,000
EBIT 164,358,000
Tax Provision 53,441,000
Depreciation and Amortization 28,000,000
Capital Expenditure -20,190,000
Unlevered Free Cash Flow 177,846,995
Current Assets 737,280,000
Current Cash 73,164,000
Current Liabilities 245,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 418,216,000
Change in NCWC 61,065,000
EBIT 176,399,000
Tax Provision 59,516,000
Depreciation and Amortization 25,734,000
Capital Expenditure -12,214,000
Unlevered Free Cash Flow 191,892,097
Current Assets 665,762,000
Current Cash 78,442,000
Current Liabilities 230,169,000
Current Debt 0
Non-Cash Working Capital (NCWC) 357,151,000
Change in NCWC 44,017,000
EBIT 168,395,000
Tax Provision 58,047,000
Depreciation and Amortization 22,701,000
Capital Expenditure -26,021,000
Unlevered Free Cash Flow 150,499,067

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.