DCF Tool

AWI

Armstrong World Industries Inc. – Flooring Contractors
Armstrong World Industries, Inc. provides home improvement solutions. The Company offers ceilings, walls, roof deck, and plasterform castings for commercial spaces and homes. Armstrong World Industries serves customers worldwide.
Analysis Results
Intrinsic Value $180.89
Latest Price $71.18
Relative Value 61% undervalued
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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 15.8%.

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 15.8%, 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 (million) Present value (million)
2022 304 282
2023 352 304
2024 407 328
2025 472 354
2026 546 381
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10200 million. This corresponds to a present value of 6610 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1650 million. Adding in the terminal value gives a total present value of 8260 million.

There are presently 45.7 million outstanding shares, so the intrinsic value per share is 180.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 321,900,000
Current Cash 98,100,000
Current Liabilities 209,600,000
Current Debt 27,200,000
Non-Cash Working Capital (NCWC) 41,400,000
Change in NCWC 11,800,000
EBIT 255,900,000
Tax Provision 57,400,000
Depreciation and Amortization 96,500,000
Capital Expenditure -79,800,000
Unlevered Free Cash Flow 223,878,121
Current Assets 311,800,000
Current Cash 136,900,000
Current Liabilities 172,300,000
Current Debt 27,000,000
Non-Cash Working Capital (NCWC) 29,600,000
Change in NCWC -20,600,000
EBIT 233,800,000
Tax Provision -42,600,000
Depreciation and Amortization 84,000,000
Capital Expenditure -55,400,000
Unlevered Free Cash Flow 241,800,000
Current Assets 244,400,000
Current Cash 45,300,000
Current Liabilities 155,200,000
Current Debt 6,300,000
Non-Cash Working Capital (NCWC) 50,200,000
Change in NCWC 117,600,000
EBIT 317,400,000
Tax Provision 57,100,000
Depreciation and Amortization 72,100,000
Capital Expenditure -71,300,000
Unlevered Free Cash Flow 375,267,134
Current Assets 752,800,000
Current Cash 325,700,000
Current Liabilities 549,500,000
Current Debt 55,000,000
Non-Cash Working Capital (NCWC) -67,400,000
Change in NCWC -319,300,000
EBIT 249,400,000
Tax Provision 53,100,000
Depreciation and Amortization 79,400,000
Capital Expenditure -71,900,000
Unlevered Free Cash Flow -116,965,883
Current Assets 648,900,000
Current Cash 159,600,000
Current Liabilities 269,900,000
Current Debt 32,500,000
Non-Cash Working Capital (NCWC) 251,900,000
Change in NCWC 186,700,000
EBIT 255,100,000
Tax Provision 1,500,000
Depreciation and Amortization 89,200,000
Capital Expenditure -89,700,000
Unlevered Free Cash Flow 439,577,127
Current Assets 406,200,000
Current Cash 141,900,000
Current Liabilities 224,100,000
Current Debt 25,000,000
Non-Cash Working Capital (NCWC) 65,200,000
Change in NCWC -186,600,000
EBIT 219,100,000
Tax Provision 50,400,000
Depreciation and Amortization 89,200,000
Capital Expenditure -104,200,000
Unlevered Free Cash Flow -59,025,571
Current Assets 880,800,000
Current Cash 244,800,000
Current Liabilities 436,300,000
Current Debt 52,100,000
Non-Cash Working Capital (NCWC) 251,800,000
Change in NCWC -25,900,000
EBIT 221,700,000
Tax Provision 71,300,000
Depreciation and Amortization 118,300,000
Capital Expenditure -170,700,000
Unlevered Free Cash Flow 15,819,612
Current Assets 811,500,000
Current Cash 185,300,000
Current Liabilities 388,100,000
Current Debt 39,600,000
Non-Cash Working Capital (NCWC) 277,700,000
Change in NCWC -84,100,000
EBIT 249,900,000
Tax Provision 83,200,000
Depreciation and Amortization 129,400,000
Capital Expenditure -222,900,000
Unlevered Free Cash Flow -39,966,090
Current Assets 884,000,000
Current Cash 135,200,000
Current Liabilities 410,900,000
Current Debt 23,900,000
Non-Cash Working Capital (NCWC) 361,800,000
Change in NCWC 30,000,000
EBIT 238,400,000
Tax Provision 71,400,000
Depreciation and Amortization 109,000,000
Capital Expenditure -213,700,000
Unlevered Free Cash Flow 64,678,708
Current Assets 1,019,900,000
Current Cash 336,400,000
Current Liabilities 384,700,000
Current Debt 33,000,000
Non-Cash Working Capital (NCWC) 331,800,000
Change in NCWC -30,900,000
EBIT 270,800,000
Tax Provision 76,100,000
Depreciation and Amortization 112,700,000
Capital Expenditure -198,800,000
Unlevered Free Cash Flow 60,340,226

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