DCF Tool

ALB

Albemarle Corp. – Plastics Material and Resin Manufacturing
Albemarle Corporation, headquartered in Charlotte, N.C., is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. We think beyond business-as-usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. Albemarle Corporation actively pursue a sustainable approach to managing our diverse global footprint of world-class resources. In conjunction with our highly experienced and talented global teams, our deep-seated values, and our collaborative customer relationships, the company creates value-added and performance-based solutions that enable a safer and more sustainable future.
Analysis Results
Intrinsic Value $6.00
Latest Price $256.03
Relative Value 4167% overvalued
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 -12.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -12.8%, 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 (million) Present value (million)
2022 104 93.7
2023 90.3 73.9
2024 78.7 58.3
2025 68.6 46.0
2026 59.9 36.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 718 million. This corresponds to a present value of 395 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 308 million. Adding in the terminal value gives a total present value of 703 million.

There are presently 117.0 million outstanding shares, so the intrinsic value per share is 6.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,007,981,000
Current Cash 439,272,000
Current Liabilities 1,874,335,000
Current Debt 389,920,000
Non-Cash Working Capital (NCWC) 84,294,000
Change in NCWC -377,994,000
EBIT 598,233,000
Tax Provision 29,446,000
Depreciation and Amortization 254,000,000
Capital Expenditure -953,667,000
Unlevered Free Cash Flow -556,221,768
Current Assets 2,206,184,000
Current Cash 746,724,000
Current Liabilities 1,801,849,000
Current Debt 804,677,000
Non-Cash Working Capital (NCWC) 462,288,000
Change in NCWC 71,949,000
EBIT 633,333,000
Tax Provision 54,425,000
Depreciation and Amortization 231,984,000
Capital Expenditure -850,477,000
Unlevered Free Cash Flow 17,993,796
Current Assets 2,225,109,000
Current Cash 613,110,000
Current Liabilities 1,408,996,000
Current Debt 187,336,000
Non-Cash Working Capital (NCWC) 390,339,000
Change in NCWC -176,883,000
EBIT 795,691,000
Tax Provision 88,161,000
Depreciation and Amortization 213,484,000
Capital Expenditure -851,796,000
Unlevered Free Cash Flow -120,799,438
Current Assets 1,998,421,000
Current Cash 555,320,000
Current Liabilities 1,183,173,000
Current Debt 307,294,000
Non-Cash Working Capital (NCWC) 567,222,000
Change in NCWC 5,875,000
EBIT 790,376,000
Tax Provision 144,826,000
Depreciation and Amortization 200,698,000
Capital Expenditure -699,991,000
Unlevered Free Cash Flow 167,465,322
Current Assets 2,477,563,000
Current Cash 1,137,303,000
Current Liabilities 1,200,925,000
Current Debt 422,012,000
Non-Cash Working Capital (NCWC) 561,347,000
Change in NCWC 417,044,000
EBIT 672,236,000
Tax Provision 431,817,000
Depreciation and Amortization 196,928,000
Capital Expenditure -317,703,000
Unlevered Free Cash Flow 422,126,064
Current Assets 3,306,618,000
Current Cash 2,269,756,000
Current Liabilities 1,140,103,000
Current Debt 247,544,000
Non-Cash Working Capital (NCWC) 144,303,000
Change in NCWC -533,626,000
EBIT 569,274,000
Tax Provision 96,263,000
Depreciation and Amortization 226,169,000
Capital Expenditure -196,654,000
Unlevered Free Cash Flow -30,157,799
Current Assets 1,831,003,000
Current Cash 213,734,000
Current Liabilities 1,616,685,000
Current Debt 677,345,000
Non-Cash Working Capital (NCWC) 677,929,000
Change in NCWC 247,637,000
EBIT 612,726,000
Tax Provision 29,122,000
Depreciation and Amortization 260,076,000
Capital Expenditure -227,649,000
Unlevered Free Cash Flow 846,940,954
Current Assets 3,348,850,000
Current Cash 2,489,768,000
Current Liabilities 1,139,886,000
Current Debt 711,096,000
Non-Cash Working Capital (NCWC) 430,292,000
Change in NCWC -163,575,000
EBIT 363,145,000
Tax Provision 18,484,000
Depreciation and Amortization 103,572,000
Capital Expenditure -110,576,000
Unlevered Free Cash Flow 165,600,126
Current Assets 1,482,915,000
Current Cash 477,239,000
Current Liabilities 436,363,000
Current Debt 24,554,000
Non-Cash Working Capital (NCWC) 593,867,000
Change in NCWC 36,559,000
EBIT 647,999,000
Tax Provision 136,322,000
Depreciation and Amortization 107,370,000
Capital Expenditure -155,346,000
Unlevered Free Cash Flow 483,261,510
Current Assets 1,407,313,000
Current Cash 477,696,000
Current Liabilities 385,009,000
Current Debt 12,700,000
Non-Cash Working Capital (NCWC) 557,308,000
Change in NCWC 57,866,000
EBIT 555,916,000
Tax Provision 82,533,000
Depreciation and Amortization 99,020,000
Capital Expenditure -280,873,000
Unlevered Free Cash Flow 320,744,452

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.