DCF Tool

AME

Ametek Inc – Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with 2019 sales of approximately $5.0 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. The common stock of AMETEK is a component of the S&P 500.
Analysis Results
Intrinsic Value $138.98
Latest Price $111.81
Relative Value 20% 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 9.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.8%, 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 1.48 1.37
2023 1.62 1.4
2024 1.78 1.43
2025 1.96 1.45
2026 2.15 1.48
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 38.6 billion. This corresponds to a present value of 24.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.13 billion. Adding in the terminal value gives a total present value of 31.9 billion.

There are presently 230.0 million outstanding shares, so the intrinsic value per share is 138.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,128,765,000
Current Cash 346,772,000
Current Liabilities 1,563,314,000
Current Debt 315,093,000
Non-Cash Working Capital (NCWC) 533,772,000
Change in NCWC 167,755,000
EBIT 1,308,670,000
Tax Provision 233,117,000
Depreciation and Amortization 292,112,000
Capital Expenditure -110,671,000
Unlevered Free Cash Flow 1,408,454,042
Current Assets 2,522,470,000
Current Cash 1,212,822,000
Current Liabilities 1,075,915,000
Current Debt 132,284,000
Non-Cash Working Capital (NCWC) 366,017,000
Change in NCWC -338,315,000
EBIT 1,027,884,000
Tax Provision 209,870,000
Depreciation and Amortization 255,275,000
Capital Expenditure -74,199,000
Unlevered Free Cash Flow 671,328,524
Current Assets 2,025,771,000
Current Cash 393,030,000
Current Liabilities 1,425,858,000
Current Debt 497,449,000
Non-Cash Working Capital (NCWC) 704,332,000
Change in NCWC 121,991,000
EBIT 1,177,380,000
Tax Provision 208,451,000
Depreciation and Amortization 234,042,000
Capital Expenditure -102,346,000
Unlevered Free Cash Flow 1,201,642,838
Current Assets 1,836,144,000
Current Cash 353,975,000
Current Liabilities 1,258,704,000
Current Debt 358,876,000
Non-Cash Working Capital (NCWC) 582,341,000
Change in NCWC 124,526,000
EBIT 1,075,540,000
Tax Provision 209,812,000
Depreciation and Amortization 199,490,000
Capital Expenditure -82,076,000
Unlevered Free Cash Flow 1,089,019,012
Current Assets 1,934,655,000
Current Cash 646,300,000
Current Liabilities 1,138,663,000
Current Debt 308,123,000
Non-Cash Working Capital (NCWC) 457,815,000
Change in NCWC -107,596,000
EBIT 915,094,000
Tax Provision 115,259,000
Depreciation and Amortization 183,227,000
Capital Expenditure -75,074,000
Unlevered Free Cash Flow 783,268,697
Current Assets 1,928,190,000
Current Cash 717,259,000
Current Liabilities 924,441,000
Current Debt 278,921,000
Non-Cash Working Capital (NCWC) 565,411,000
Change in NCWC -34,100,000
EBIT 801,897,000
Tax Provision 180,945,000
Depreciation and Amortization 179,716,000
Capital Expenditure -63,280,000
Unlevered Free Cash Flow 674,885,684
Current Assets 1,619,613,000
Current Cash 381,005,000
Current Liabilities 1,025,172,000
Current Debt 386,075,000
Non-Cash Working Capital (NCWC) 599,511,000
Change in NCWC 48,465,000
EBIT 907,716,000
Tax Provision 215,521,000
Depreciation and Amortization 149,460,000
Capital Expenditure -69,083,000
Unlevered Free Cash Flow 793,952,950
Current Assets 1,578,604,000
Current Cash 377,615,000
Current Liabilities 936,144,000
Current Debt 286,201,000
Non-Cash Working Capital (NCWC) 551,046,000
Change in NCWC 78,350,000
EBIT 898,586,000
Tax Provision 220,372,000
Depreciation and Amortization 138,584,000
Capital Expenditure -71,327,000
Unlevered Free Cash Flow 798,150,106
Current Assets 1,369,129,000
Current Cash 295,203,000
Current Liabilities 874,545,000
Current Debt 273,315,000
Non-Cash Working Capital (NCWC) 472,696,000
Change in NCWC 25,252,000
EBIT 815,079,000
Tax Provision 207,796,000
Depreciation and Amortization 118,657,000
Capital Expenditure -63,314,000
Unlevered Free Cash Flow 661,993,916
Current Assets 1,164,743,000
Current Cash 157,984,000
Current Liabilities 879,969,000
Current Debt 320,654,000
Non-Cash Working Capital (NCWC) 447,444,000
Change in NCWC 51,647,000
EBIT 745,872,000
Tax Provision 203,343,000
Depreciation and Amortization 105,471,000
Capital Expenditure -57,427,000
Unlevered Free Cash Flow 616,621,756

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