AJRD Intrinsic Value

AJRD

Aerojet Rocketdyne Holdings Inc – Guided Missile and Space Vehicle Manufacturing

aerojet rocketdyne holdings, inc. designs, develops, manufactures, and sells aerospace and defense products and systems in the united states. the company operates through two segments, aerospace and defense, and real estate. the aerospace and defense segment offers aerospace and defense products and systems for the united states government, including the department of defense, the national aeronautics and space administration, and aerospace and defense prime contractors. this segment provides liquid and solid rocket propulsion systems, air-breathing hypersonic engines, and electric power and propulsion systems for space, defense, civil, and commercial applications; and armament systems. the real estate segment engages in the re-zoning, entitlement, sale, and leasing of the company's excess real estate assets. it owns approximately 11,394 acres of land adjacent to the united states highway 50 between rancho cordova and folsom, california east of sacramento. the company was formerly know

Analysis Results

Intrinsic Value	$238.11
Latest Price	$57.99
Relative Value	76% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 22.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.7%, 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)
2023	0.453	0.426
2024	0.556	0.491
2025	0.683	0.566
2026	0.837	0.653
2027	1.03	0.753

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.7 billion. This corresponds to a present value of 16.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.89 billion. Adding in the terminal value gives a total present value of 19.2 billion.

There are presently 80.8 million outstanding shares, so the intrinsic value per share is 238.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	1,069,000,000
Current Cash	332,600,000
Current Liabilities	747,100,000
Current Debt	14,700,000
Non-Cash Working Capital (NCWC)	4,000,000
Change in NCWC	187,500,000
EBIT	188,800,000
Tax Provision	34,300,000
Depreciation and Amortization	57,300,000
Capital Expenditure	-40,700,000
Unlevered Free Cash Flow	333,104,616

Current Assets	1,236,600,000
Current Cash	711,000,000
Current Liabilities	875,800,000
Current Debt	166,700,000
Non-Cash Working Capital (NCWC)	-183,500,000
Change in NCWC	468,600,000
EBIT	257,000,000
Tax Provision	51,300,000
Depreciation and Amortization	61,400,000
Capital Expenditure	-37,300,000
Unlevered Free Cash Flow	682,089,230

Current Assets	1,660,200,000
Current Cash	1,156,500,000
Current Liabilities	1,455,700,000
Current Debt	299,900,000
Non-Cash Working Capital (NCWC)	-652,100,000
Change in NCWC	-552,300,000
EBIT	244,900,000
Tax Provision	42,500,000
Depreciation and Amortization	65,300,000
Capital Expenditure	-54,600,000
Unlevered Free Cash Flow	-354,459,433

Current Assets	1,418,000,000
Current Cash	932,600,000
Current Liabilities	869,900,000
Current Debt	284,700,000
Non-Cash Working Capital (NCWC)	-99,800,000
Change in NCWC	6,400,000
EBIT	240,300,000
Tax Provision	50,900,000
Depreciation and Amortization	74,500,000
Capital Expenditure	-42,900,000
Unlevered Free Cash Flow	214,562,272

Current Assets	1,234,300,000
Current Cash	735,300,000
Current Liabilities	878,300,000
Current Debt	273,100,000
Non-Cash Working Capital (NCWC)	-106,200,000
Change in NCWC	1,900,000
EBIT	233,700,000
Tax Provision	51,300,000
Depreciation and Amortization	72,300,000
Capital Expenditure	-43,200,000
Unlevered Free Cash Flow	201,132,608

Current Assets	1,016,700,000
Current Cash	555,000,000
Current Liabilities	594,800,000
Current Debt	25,000,000
Non-Cash Working Capital (NCWC)	-108,100,000
Change in NCWC	-24,400,000
EBIT	114,300,000
Tax Provision	96,100,000
Depreciation and Amortization	72,600,000
Capital Expenditure	-29,400,000
Unlevered Free Cash Flow	37,000,000

Current Assets	854,700,000
Current Cash	410,300,000
Current Liabilities	583,700,000
Current Debt	55,600,000
Non-Cash Working Capital (NCWC)	-83,700,000
Change in NCWC	13,600,000
EBIT	95,700,000
Tax Provision	11,200,000
Depreciation and Amortization	64,900,000
Capital Expenditure	-47,600,000
Unlevered Free Cash Flow	90,018,430

Current Assets	662,600,000
Current Cash	211,100,000
Current Liabilities	554,100,000
Current Debt	5,300,000
Non-Cash Working Capital (NCWC)	-97,300,000
Change in NCWC	64,100,000
EBIT	85,200,000
Tax Provision	300,000
Depreciation and Amortization	65,100,000
Capital Expenditure	-36,800,000
Unlevered Free Cash Flow	177,600,000

Current Assets	666,500,000
Current Cash	265,900,000
Current Liabilities	567,300,000
Current Debt	5,300,000
Non-Cash Working Capital (NCWC)	-161,400,000
Change in NCWC	-83,000,000
EBIT	73,800,000
Tax Provision	12,900,000
Depreciation and Amortization	63,700,000
Capital Expenditure	-43,400,000
Unlevered Free Cash Flow	11,100,000

Current Assets	596,000,000
Current Cash	197,600,000
Current Liabilities	479,700,000
Current Debt	2,900,000
Non-Cash Working Capital (NCWC)	-78,400,000
Change in NCWC	31,500,000
EBIT	22,300,000
Tax Provision	-193,900,000
Depreciation and Amortization	43,800,000
Capital Expenditure	-63,200,000
Unlevered Free Cash Flow	34,400,000

Current Assets	368,100,000
Current Cash	162,100,000
Current Liabilities	318,600,000
Current Debt	2,700,000
Non-Cash Working Capital (NCWC)	-109,900,000
Change in NCWC	-25,800,000
EBIT	34,900,000
Tax Provision	18,900,000
Depreciation and Amortization	22,300,000
Capital Expenditure	-37,200,000
Unlevered Free Cash Flow	-24,700,000

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