DCF Tool

AXL

American Axle & Manufacturing Holdings Inc – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
AAM delivers POWER that moves the world. As a leading global tier 1 automotive supplier, AAM designs, engineers and manufactures driveline and metal forming technologies that are making the next generation of vehicles smarter, lighter, safer and more efficient. Headquartered in Detroit, AAM has approximately 20,000 associates operating at nearly 80 facilities in 17 countries to support its customers on global and regional platforms with a focus on quality, operational excellence and technology leadership.
Analysis Results
Intrinsic Value $860.22
Latest Price $7.52
Relative Value 99% 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 32.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.6%, 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 1.88 1.76
2023 2.49 2.19
2024 3.3 2.72
2025 4.38 3.37
2026 5.81 4.19
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 125 billion. This corresponds to a present value of 84.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 14.2 billion. Adding in the terminal value gives a total present value of 98.5 billion.

There are presently 114.0 million outstanding shares, so the intrinsic value per share is 860.22.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,712,000,000
Current Cash 1,060,400,000
Current Liabilities 2,079,800,000
Current Debt 37,600,000
Non-Cash Working Capital (NCWC) 609,400,000
Change in NCWC 255,000,000
EBIT 585,400,000
Tax Provision -9,400,000
Depreciation and Amortization 1,088,600,000
Capital Expenditure -362,400,000
Unlevered Free Cash Flow 1,566,600,000
Current Assets 1,877,000,000
Current Cash 557,000,000
Current Liabilities 979,300,000
Current Debt 13,700,000
Non-Cash Working Capital (NCWC) 354,400,000
Change in NCWC 26,300,000
EBIT 182,200,000
Tax Provision -49,200,000
Depreciation and Amortization 521,900,000
Capital Expenditure -215,600,000
Unlevered Free Cash Flow 514,800,000
Current Assets 1,857,800,000
Current Cash 532,000,000
Current Liabilities 1,026,400,000
Current Debt 28,700,000
Non-Cash Working Capital (NCWC) 328,100,000
Change in NCWC 9,900,000
EBIT 442,500,000
Tax Provision -48,900,000
Depreciation and Amortization 536,900,000
Capital Expenditure -433,300,000
Unlevered Free Cash Flow 556,000,000
Current Assets 2,029,800,000
Current Cash 476,400,000
Current Liabilities 1,356,800,000
Current Debt 121,600,000
Non-Cash Working Capital (NCWC) 318,200,000
Change in NCWC -39,500,000
EBIT 655,300,000
Tax Provision -57,100,000
Depreciation and Amortization 528,800,000
Capital Expenditure -524,700,000
Unlevered Free Cash Flow 619,900,000
Current Assets 1,945,000,000
Current Cash 376,800,000
Current Liabilities 1,216,400,000
Current Debt 5,900,000
Non-Cash Working Capital (NCWC) 357,700,000
Change in NCWC 150,600,000
EBIT 653,700,000
Tax Provision 2,500,000
Depreciation and Amortization 428,500,000
Capital Expenditure -477,700,000
Unlevered Free Cash Flow 750,293,382
Current Assets 1,336,500,000
Current Cash 481,200,000
Current Liabilities 651,500,000
Current Debt 3,300,000
Non-Cash Working Capital (NCWC) 207,100,000
Change in NCWC 61,300,000
EBIT 406,900,000
Tax Provision 58,300,000
Depreciation and Amortization 201,800,000
Capital Expenditure -223,000,000
Unlevered Free Cash Flow 367,661,304
Current Assets 1,124,200,000
Current Cash 282,500,000
Current Liabilities 699,200,000
Current Debt 3,300,000
Non-Cash Working Capital (NCWC) 145,800,000
Change in NCWC -70,300,000
EBIT 358,100,000
Tax Provision 37,100,000
Depreciation and Amortization 198,400,000
Capital Expenditure -193,500,000
Unlevered Free Cash Flow 243,981,591
Current Assets 1,139,500,000
Current Cash 249,200,000
Current Liabilities 687,200,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) 216,100,000
Change in NCWC 39,400,000
EBIT 267,600,000
Tax Provision 33,700,000
Depreciation and Amortization 199,900,000
Capital Expenditure -206,500,000
Unlevered Free Cash Flow 249,363,667
Current Assets 997,800,000
Current Cash 154,000,000
Current Liabilities 667,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 176,700,000
Change in NCWC -32,200,000
EBIT 240,300,000
Tax Provision -8,200,000
Depreciation and Amortization 177,000,000
Capital Expenditure -251,900,000
Unlevered Free Cash Flow 133,200,000
Current Assets 872,100,000
Current Cash 62,400,000
Current Liabilities 600,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 208,900,000
Change in NCWC 191,100,000
EBIT 156,400,000
Tax Provision -335,200,000
Depreciation and Amortization 152,200,000
Capital Expenditure -207,600,000
Unlevered Free Cash Flow 292,100,000

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