DCF Tool

AXTA

Axalta Coating Systems Ltd – Paint and Coating Manufacturing
Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, its coatings are designed to prevent corrosion, increase productivity, and enhance durability. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve its more than 100,000 customers in over 130 countries better every day with the finest coatings, application systems and technology.
Analysis Results
Intrinsic Value $70.95
Latest Price $26.11
Relative Value 63% 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 7.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.1%, 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 610 573
2023 654 577
2024 700 581
2025 750 584
2026 803 588
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18500 million. This corresponds to a present value of 12700 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2900 million. Adding in the terminal value gives a total present value of 15600 million.

There are presently 221.0 million outstanding shares, so the intrinsic value per share is 70.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,575,600,000
Current Cash 840,600,000
Current Liabilities 1,334,900,000
Current Debt 79,700,000
Non-Cash Working Capital (NCWC) 479,800,000
Change in NCWC 41,500,000
EBIT 462,400,000
Tax Provision 76,100,000
Depreciation and Amortization 316,500,000
Capital Expenditure -121,600,000
Unlevered Free Cash Flow 595,455,976
Current Assets 2,925,900,000
Current Cash 1,360,900,000
Current Liabilities 1,180,900,000
Current Debt 54,200,000
Non-Cash Working Capital (NCWC) 438,300,000
Change in NCWC -88,600,000
EBIT 305,500,000
Tax Provision 200,000
Depreciation and Amortization 320,300,000
Capital Expenditure -82,100,000
Unlevered Free Cash Flow 454,600,000
Current Assets 2,573,400,000
Current Cash 1,017,500,000
Current Liabilities 1,072,900,000
Current Debt 43,900,000
Non-Cash Working Capital (NCWC) 526,900,000
Change in NCWC -90,700,000
EBIT 488,200,000
Tax Provision 77,400,000
Depreciation and Amortization 353,000,000
Capital Expenditure -112,500,000
Unlevered Free Cash Flow 523,494,909
Current Assets 2,309,600,000
Current Cash 693,600,000
Current Liabilities 1,040,600,000
Current Debt 42,200,000
Non-Cash Working Capital (NCWC) 617,600,000
Change in NCWC 116,300,000
EBIT 442,100,000
Tax Provision 54,200,000
Depreciation and Amortization 369,100,000
Capital Expenditure -143,400,000
Unlevered Free Cash Flow 694,523,102
Current Assets 2,315,600,000
Current Cash 769,800,000
Current Liabilities 1,082,200,000
Current Debt 37,700,000
Non-Cash Working Capital (NCWC) 501,300,000
Change in NCWC 8,500,000
EBIT 433,200,000
Tax Provision 141,900,000
Depreciation and Amortization 347,500,000
Capital Expenditure -125,000,000
Unlevered Free Cash Flow 339,985,443
Current Assets 1,920,000,000
Current Cash 535,400,000
Current Liabilities 919,700,000
Current Debt 27,900,000
Non-Cash Working Capital (NCWC) 492,800,000
Change in NCWC -108,000,000
EBIT 466,200,000
Tax Provision 39,800,000
Depreciation and Amortization 322,100,000
Capital Expenditure -136,200,000
Unlevered Free Cash Flow 331,802,974
Current Assets 1,917,300,000
Current Cash 485,000,000
Current Liabilities 881,600,000
Current Debt 50,100,000
Non-Cash Working Capital (NCWC) 600,800,000
Change in NCWC 16,600,000
EBIT 468,900,000
Tax Provision 63,300,000
Depreciation and Amortization 307,700,000
Capital Expenditure -138,100,000
Unlevered Free Cash Flow 470,972,394

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