DCF Tool

ALLE

Allegion plc – Security Guards and Patrol Services
Allegion is a global pioneer in seamless access, with leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, businesses, schools and institutions. Allegion had $2.9 billion in revenue in 2019 and sells products in almost 130 countries.
Analysis Results
Intrinsic Value $182.72
Latest Price $108.46
Relative Value 41% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
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 13.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.1%, 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 0.643 0.598
2023 0.727 0.63
2024 0.823 0.663
2025 0.931 0.698
2026 1.05 0.734
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19.6 billion. This corresponds to a present value of 12.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.32 billion. Adding in the terminal value gives a total present value of 16.0 billion.

There are presently 87.8 million outstanding shares, so the intrinsic value per share is 182.72.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,117,600,000
Current Cash 397,900,000
Current Liabilities 601,200,000
Current Debt 12,600,000
Non-Cash Working Capital (NCWC) 131,100,000
Change in NCWC -12,200,000
EBIT 536,600,000
Tax Provision 40,700,000
Depreciation and Amortization 83,100,000
Capital Expenditure -45,400,000
Unlevered Free Cash Flow 520,421,335
Current Assets 1,145,000,000
Current Cash 480,400,000
Current Liabilities 521,500,000
Current Debt 200,000
Non-Cash Working Capital (NCWC) 143,300,000
Change in NCWC 3,700,000
EBIT 543,400,000
Tax Provision 50,900,000
Depreciation and Amortization 81,000,000
Capital Expenditure -47,100,000
Unlevered Free Cash Flow 505,304,707
Current Assets 1,001,800,000
Current Cash 355,300,000
Current Liabilities 507,000,000
Current Debt 100,000
Non-Cash Working Capital (NCWC) 139,600,000
Change in NCWC -22,700,000
EBIT 565,000,000
Tax Provision 73,100,000
Depreciation and Amortization 83,000,000
Capital Expenditure -65,600,000
Unlevered Free Cash Flow 472,786,069
Current Assets 931,600,000
Current Cash 283,800,000
Current Liabilities 520,800,000
Current Debt 35,300,000
Non-Cash Working Capital (NCWC) 162,300,000
Change in NCWC 21,600,000
EBIT 526,200,000
Tax Provision 39,800,000
Depreciation and Amortization 86,200,000
Capital Expenditure -49,100,000
Unlevered Free Cash Flow 540,828,535
Current Assets 1,032,700,000
Current Cash 466,200,000
Current Liabilities 460,800,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) 140,700,000
Change in NCWC 5,200,000
EBIT 493,600,000
Tax Provision 119,000,000
Depreciation and Amortization 66,900,000
Capital Expenditure -49,300,000
Unlevered Free Cash Flow 367,958,251
Current Assets 829,300,000
Current Cash 312,400,000
Current Liabilities 429,600,000
Current Debt 48,200,000
Non-Cash Working Capital (NCWC) 135,500,000
Change in NCWC -18,400,000
EBIT 429,100,000
Tax Provision 63,800,000
Depreciation and Amortization 66,900,000
Capital Expenditure -42,500,000
Unlevered Free Cash Flow 342,298,033
Current Assets 735,100,000
Current Cash 199,700,000
Current Liabilities 447,100,000
Current Debt 65,600,000
Non-Cash Working Capital (NCWC) 153,900,000
Change in NCWC -47,700,000
EBIT 358,600,000
Tax Provision 54,600,000
Depreciation and Amortization 53,200,000
Capital Expenditure -35,200,000
Unlevered Free Cash Flow 235,352,173
Current Assets 973,800,000
Current Cash 290,500,000
Current Liabilities 531,300,000
Current Debt 49,600,000
Non-Cash Working Capital (NCWC) 201,600,000
Change in NCWC -75,600,000
EBIT 326,300,000
Tax Provision 84,200,000
Depreciation and Amortization 48,800,000
Capital Expenditure -51,500,000
Unlevered Free Cash Flow 145,445,091
Current Assets 923,200,000
Current Cash 227,400,000
Current Liabilities 490,500,000
Current Debt 71,900,000
Non-Cash Working Capital (NCWC) 277,200,000
Change in NCWC 65,300,000
EBIT 373,400,000
Tax Provision 174,200,000
Depreciation and Amortization 46,100,000
Capital Expenditure -20,200,000
Unlevered Free Cash Flow 166,905,354

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.