DCF Tool

AQUA

Evoqua Water Technologies Corp – Other Commercial and Service Industry Machinery Manufacturing
Evoqua Water Technologies is a leading provider of mission-critical water and wastewater treatment solutions, offering a broad portfolio of products, services, and expertise to support industrial, municipal, and recreational customers who value water. Evoqua has worked to protect water, the environment, and its employees for more than 100 years, earning a reputation for quality, safety, and reliability around the world. Headquartered in Pittsburgh, Pennsylvania, the company operates in more than 160 locations across ten countries. Serving more than 38,000 customers and 200,000 installations worldwide, its employees are united by a common purpose: Transforming Water. Enriching Life.
Analysis Results
Intrinsic Value $22.19
Latest Price $33.07
Relative Value 49% overvalued
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Cash Flow (Millions)
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 9.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.7%, 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 (million) Present value (million)
2022 150 138
2023 164 139
2024 180 140
2025 197 141
2026 217 143
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3290 million. This corresponds to a present value of 1990 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 701 million. Adding in the terminal value gives a total present value of 2700 million.

There are presently 121.0 million outstanding shares, so the intrinsic value per share is 22.19.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,356,916,000
Current Cash 292,488,000
Current Liabilities 811,978,000
Current Debt 49,736,000
Non-Cash Working Capital (NCWC) 302,186,000
Change in NCWC 123,329,000
EBIT 198,634,000
Tax Provision 20,160,000
Depreciation and Amortization 227,328,000
Capital Expenditure -158,146,000
Unlevered Free Cash Flow 358,716,009
Current Assets 695,712,000
Current Cash 193,001,000
Current Liabilities 349,555,000
Current Debt 25,701,000
Non-Cash Working Capital (NCWC) 178,857,000
Change in NCWC -57,611,000
EBIT 168,448,000
Tax Provision 7,371,000
Depreciation and Amortization 107,268,000
Capital Expenditure -94,985,000
Unlevered Free Cash Flow 112,923,145
Current Assets 637,293,000
Current Cash 109,881,000
Current Liabilities 322,221,000
Current Debt 31,277,000
Non-Cash Working Capital (NCWC) 236,468,000
Change in NCWC 14,201,000
EBIT 59,672,000
Tax Provision 9,587,000
Depreciation and Amortization 98,236,000
Capital Expenditure -95,295,000
Unlevered Free Cash Flow 67,227,000
Current Assets 565,560,000
Current Cash 82,365,000
Current Liabilities 284,719,000
Current Debt 23,791,000
Non-Cash Working Capital (NCWC) 222,267,000
Change in NCWC 40,078,000
EBIT 66,846,000
Tax Provision 1,382,000
Depreciation and Amortization 85,860,000
Capital Expenditure -82,663,000
Unlevered Free Cash Flow 100,151,091
Current Assets 512,240,000
Current Cash 59,254,000
Current Liabilities 291,899,000
Current Debt 21,102,000
Non-Cash Working Capital (NCWC) 182,189,000
Change in NCWC 62,822,000
EBIT 69,204,000
Tax Provision 7,417,000
Depreciation and Amortization 77,886,000
Capital Expenditure -62,689,000
Unlevered Free Cash Flow 110,100,987
Current Assets 418,336,000
Current Cash 50,362,000
Current Liabilities 284,862,000
Current Debt 36,255,000
Non-Cash Working Capital (NCWC) 119,367,000
Change in NCWC 44,629,000
EBIT 37,155,000
Tax Provision -18,394,000
Depreciation and Amortization 69,289,000
Capital Expenditure -47,976,000
Unlevered Free Cash Flow 103,097,000

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