DCF Tool

APD

Air Products & Chemicals Inc. – Industrial Gas Manufacturing
air products touches the lives of consumers around the globe in positive ways every day. with more than 20,000 employees and operations in over 50 countries, we serve customers across a wide range of industries from food and beverage, health and personal care to energy, transportation and semiconductors. we supply a unique portfolio of atmospheric gases, process and specialty gases, performance materials, equipment and services. founded in 1940, air products has built a reputation for its innovative culture, operational excellence and commitment to safety and the environment. our aim is to develop lasting relationships with our customers and communities based on human qualities: understanding their needs, doing business with integrity and honesty, and demonstrating a passion for exceeding expectations. for more information, visit http://www.airproducts.com.
Analysis Results
Intrinsic Value $50.37
Latest Price $232.41
Relative Value 361% overvalued
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 -0.7%.

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 -0.7%, 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)
2024 0.696 0.648
2025 0.692 0.6
2026 0.687 0.555
2027 0.683 0.514
2028 0.678 0.475
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 12.9 billion. This corresponds to a present value of 8.41 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.79 billion. Adding in the terminal value gives a total present value of 11.2 billion.

There are presently 222.0 million outstanding shares, so the intrinsic value per share is 50.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,200,500,000
Current Cash 1,949,200,000
Current Liabilities 3,895,800,000
Current Debt 874,500,000
Non-Cash Working Capital (NCWC) 230,000,000
Change in NCWC 155,600,000
EBIT 3,308,700,000
Tax Provision 551,200,000
Depreciation and Amortization 1,358,300,000
Capital Expenditure -4,626,400,000
Unlevered Free Cash Flow -436,521,149
Current Assets 6,282,900,000
Current Cash 3,301,700,000
Current Liabilities 3,465,800,000
Current Debt 559,000,000
Non-Cash Working Capital (NCWC) 74,400,000
Change in NCWC -188,900,000
EBIT 2,838,100,000
Tax Provision 500,800,000
Depreciation and Amortization 1,338,200,000
Capital Expenditure -2,926,500,000
Unlevered Free Cash Flow 544,938,015
Current Assets 8,376,300,000
Current Cash 5,800,800,000
Current Liabilities 2,799,100,000
Current Debt 486,900,000
Non-Cash Working Capital (NCWC) 263,300,000
Change in NCWC -124,700,000
EBIT 2,509,100,000
Tax Provision 462,800,000
Depreciation and Amortization 1,321,300,000
Capital Expenditure -2,464,200,000
Unlevered Free Cash Flow 778,386,224
Current Assets 8,684,900,000
Current Cash 6,357,900,000
Current Liabilities 2,416,700,000
Current Debt 477,700,000
Non-Cash Working Capital (NCWC) 388,000,000
Change in NCWC -93,300,000
EBIT 2,403,200,000
Tax Provision 478,400,000
Depreciation and Amortization 1,185,000,000
Capital Expenditure -2,509,000,000
Unlevered Free Cash Flow 511,565,946
Current Assets 4,618,300,000
Current Cash 2,414,700,000
Current Liabilities 1,820,900,000
Current Debt 98,600,000
Non-Cash Working Capital (NCWC) 481,300,000
Change in NCWC 252,500,000
EBIT 2,335,900,000
Tax Provision 480,100,000
Depreciation and Amortization 1,082,800,000
Capital Expenditure -1,989,700,000
Unlevered Free Cash Flow 1,191,670,085
Current Assets 5,082,200,000
Current Cash 2,976,000,000
Current Liabilities 2,338,300,000
Current Debt 460,900,000
Non-Cash Working Capital (NCWC) 228,800,000
Change in NCWC -41,700,000
EBIT 2,113,000,000
Tax Provision 524,300,000
Depreciation and Amortization 970,700,000
Capital Expenditure -1,568,400,000
Unlevered Free Cash Flow 923,800,545
Current Assets 5,876,700,000
Current Cash 3,677,600,000
Current Liabilities 2,489,000,000
Current Debt 560,400,000
Non-Cash Working Capital (NCWC) 270,500,000
Change in NCWC -569,300,000
EBIT 1,761,700,000
Tax Provision 260,900,000
Depreciation and Amortization 865,800,000
Capital Expenditure -1,039,700,000
Unlevered Free Cash Flow 693,927,208
Current Assets 4,317,300,000
Current Cash 1,501,300,000
Current Liabilities 3,283,300,000
Current Debt 1,307,100,000
Non-Cash Working Capital (NCWC) 839,800,000
Change in NCWC -146,400,000
EBIT 2,309,100,000
Tax Provision 586,500,000
Depreciation and Amortization 925,900,000
Capital Expenditure -1,055,800,000
Unlevered Free Cash Flow 1,397,640,469
Current Assets 2,910,800,000
Current Cash 206,400,000
Current Liabilities 3,648,100,000
Current Debt 1,929,900,000
Non-Cash Working Capital (NCWC) 986,200,000
Change in NCWC -303,000,000
EBIT 2,049,800,000
Tax Provision 415,900,000
Depreciation and Amortization 936,400,000
Capital Expenditure -1,614,800,000
Unlevered Free Cash Flow 576,613,544
Current Assets 3,294,800,000
Current Cash 336,600,000
Current Liabilities 2,963,000,000
Current Debt 1,294,000,000
Non-Cash Working Capital (NCWC) 1,289,200,000
Change in NCWC 310,800,000
EBIT 1,781,900,000
Tax Provision 366,000,000
Depreciation and Amortization 956,900,000
Capital Expenditure -1,684,200,000
Unlevered Free Cash Flow 883,912,070
Current Assets 3,439,100,000
Current Cash 450,400,000
Current Liabilities 3,227,600,000
Current Debt 1,217,300,000
Non-Cash Working Capital (NCWC) 978,400,000
Change in NCWC -800,000
EBIT 1,699,500,000
Tax Provision 307,900,000
Depreciation and Amortization 907,000,000
Capital Expenditure -1,524,200,000
Unlevered Free Cash Flow 694,002,925
Current Assets 3,415,800,000
Current Cash 454,400,000
Current Liabilities 2,689,900,000
Current Debt 707,700,000
Non-Cash Working Capital (NCWC) 979,200,000
Change in NCWC -80,800,000
EBIT 1,659,800,000
Tax Provision 287,300,000
Depreciation and Amortization 840,800,000
Capital Expenditure -1,521,000,000
Unlevered Free Cash Flow 535,477,683

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.