DCF Tool


Avery Dennison Corp. – Paper Bag and Coated and Treated Paper Manufacturing
avery dennison (nyse: avy) is a global leader in labeling and packaging materials and solutions. the company’s applications and technologies are an integral part of products used in every major market and industry. with operations in more than 50 countries and over 25,000 employees worldwide, avery dennison serves customers with insights and innovations that help make brands more inspiring and the world more intelligent.
Analysis Results
Intrinsic Value $293.44
Latest Price $185.05
Relative Value 37% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 12.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.9%, 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)
2023 1.01 0.939
2024 1.14 0.984
2025 1.29 1.03
2026 1.46 1.08
2027 1.64 1.13
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 29.0 billion. This corresponds to a present value of 18.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.16 billion. Adding in the terminal value gives a total present value of 23.6 billion.

There are presently 80.6 million outstanding shares, so the intrinsic value per share is 293.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,782,000,000
Current Cash 167,200,000
Current Liabilities 2,799,800,000
Current Debt 598,600,000
Non-Cash Working Capital (NCWC) 413,600,000
Change in NCWC 70,800,000
EBIT 1,073,400,000
Tax Provision 242,200,000
Depreciation and Amortization 290,700,000
Capital Expenditure -298,500,000
Unlevered Free Cash Flow 876,240,408
Current Assets 2,734,600,000
Current Cash 162,700,000
Current Liabilities 2,547,900,000
Current Debt 318,800,000
Non-Cash Working Capital (NCWC) 342,800,000
Change in NCWC 72,800,000
EBIT 1,060,400,000
Tax Provision 248,600,000
Depreciation and Amortization 244,100,000
Capital Expenditure -272,100,000
Unlevered Free Cash Flow 838,571,659
Current Assets 2,416,200,000
Current Cash 284,900,000
Current Liabilities 1,926,000,000
Current Debt 64,700,000
Non-Cash Working Capital (NCWC) 270,000,000
Change in NCWC 26,900,000
EBIT 859,100,000
Tax Provision 177,700,000
Depreciation and Amortization 205,300,000
Capital Expenditure -218,600,000
Unlevered Free Cash Flow 664,600,122
Current Assets 2,340,600,000
Current Cash 283,900,000
Current Liabilities 2,253,800,000
Current Debt 440,200,000
Non-Cash Working Capital (NCWC) 243,100,000
Change in NCWC 2,600,000
EBIT 821,100,000
Tax Provision -56,700,000
Depreciation and Amortization 179,000,000
Capital Expenditure -257,200,000
Unlevered Free Cash Flow 745,500,000
Current Assets 2,298,000,000
Current Cash 258,100,000
Current Liabilities 1,994,000,000
Current Debt 194,600,000
Non-Cash Working Capital (NCWC) 240,500,000
Change in NCWC -44,300,000
EBIT 786,000,000
Tax Provision 85,400,000
Depreciation and Amortization 181,000,000
Capital Expenditure -256,600,000
Unlevered Free Cash Flow 544,673,806
Current Assets 2,237,900,000
Current Cash 246,700,000
Current Liabilities 1,971,800,000
Current Debt 265,400,000
Non-Cash Working Capital (NCWC) 284,800,000
Change in NCWC 17,900,000
EBIT 689,000,000
Tax Provision 307,700,000
Depreciation and Amortization 178,700,000
Capital Expenditure -226,100,000
Unlevered Free Cash Flow 299,864,206
Current Assets 1,904,800,000
Current Cash 212,700,000
Current Liabilities 2,004,300,000
Current Debt 579,100,000
Non-Cash Working Capital (NCWC) 266,900,000
Change in NCWC 31,700,000
EBIT 602,200,000
Tax Provision 156,400,000
Depreciation and Amortization 180,100,000
Capital Expenditure -206,600,000
Unlevered Free Cash Flow 409,990,484
Current Assets 1,775,400,000
Current Cash 176,400,000
Current Liabilities 1,459,100,000
Current Debt 95,300,000
Non-Cash Working Capital (NCWC) 235,200,000
Change in NCWC -48,500,000
EBIT 537,700,000
Tax Provision 134,500,000
Depreciation and Amortization 188,300,000
Capital Expenditure -151,500,000
Unlevered Free Cash Flow 349,133,651
Current Assets 1,921,300,000
Current Cash 244,100,000
Current Liabilities 1,597,800,000
Current Debt 204,300,000
Non-Cash Working Capital (NCWC) 283,700,000
Change in NCWC 38,100,000
EBIT 495,900,000
Tax Provision 113,300,000
Depreciation and Amortization 201,600,000
Capital Expenditure -175,000,000
Unlevered Free Cash Flow 406,413,748
Current Assets 2,091,800,000
Current Cash 369,000,000
Current Liabilities 1,554,100,000
Current Debt 76,900,000
Non-Cash Working Capital (NCWC) 245,600,000
Change in NCWC -358,700,000
EBIT 458,700,000
Tax Provision 118,800,000
Depreciation and Amortization 204,600,000
Capital Expenditure -181,400,000
Unlevered Free Cash Flow -26,878,656
Current Assets 2,411,700,000
Current Cash 253,100,000
Current Liabilities 2,074,500,000
Current Debt 520,200,000
Non-Cash Working Capital (NCWC) 604,300,000
Change in NCWC -4,100,000
EBIT 397,700,000
Tax Provision 86,400,000
Depreciation and Amortization 220,600,000
Capital Expenditure -154,100,000
Unlevered Free Cash Flow 325,613,581

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