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Acuity Brands, Inc. – Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing
Acuity Brands, Inc. is a market-leading industrial technology company. The Company designs, manufactures, and brings to market products and services that make the world more brilliant, productive, and connected including building management systems, lighting, lighting controls, and location-aware applications. Acuity Brands achieves growth through the development of innovative new products and services. Through the Acuity Business System, Acuity Brands achieves customer-focused efficiencies that allow the Company to increase market share and deliver superior returns. The Company looks to aggressively deploy capital to grow the business and to enter attractive new verticals. Acuity Brands is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. The Company is powered by approximately 11,000 dedicated and talented associates.
Analysis Results
Intrinsic Value $1,653.43
Latest Price $157.47
Relative Value 90% 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 30.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 30.5%, 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 1.44 1.33
2023 1.88 1.61
2024 2.45 1.94
2025 3.2 2.34
2026 4.18 2.83
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 70.1 billion. This corresponds to a present value of 44.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.1 billion. Adding in the terminal value gives a total present value of 54.1 billion.

There are presently 32.7 million outstanding shares, so the intrinsic value per share is 1653.43.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,088,600,000
Current Cash 982,600,000
Current Liabilities 1,384,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 721,600,000
Change in NCWC 435,900,000
EBIT 861,800,000
Tax Provision 179,800,000
Depreciation and Amortization 200,200,000
Capital Expenditure -87,600,000
Unlevered Free Cash Flow 1,214,752,751
Current Assets 1,439,700,000
Current Cash 560,700,000
Current Liabilities 617,600,000
Current Debt 24,300,000
Non-Cash Working Capital (NCWC) 285,700,000
Change in NCWC -108,100,000
EBIT 373,900,000
Tax Provision 76,400,000
Depreciation and Amortization 101,100,000
Capital Expenditure -54,900,000
Unlevered Free Cash Flow 224,023,529
Current Assets 1,441,800,000
Current Cash 461,000,000
Current Liabilities 596,100,000
Current Debt 9,100,000
Non-Cash Working Capital (NCWC) 393,800,000
Change in NCWC -5,900,000
EBIT 464,700,000
Tax Provision 94,500,000
Depreciation and Amortization 88,300,000
Capital Expenditure -53,000,000
Unlevered Free Cash Flow 390,748,270
Current Assets 1,211,100,000
Current Cash 129,100,000
Current Liabilities 682,700,000
Current Debt 400,000
Non-Cash Working Capital (NCWC) 399,700,000
Change in NCWC 65,700,000
EBIT 460,200,000
Tax Provision 76,300,000
Depreciation and Amortization 80,300,000
Capital Expenditure -43,600,000
Unlevered Free Cash Flow 480,155,153
Current Assets 1,245,600,000
Current Cash 311,100,000
Current Liabilities 600,900,000
Current Debt 400,000
Non-Cash Working Capital (NCWC) 334,000,000
Change in NCWC 96,600,000
EBIT 530,100,000
Tax Provision 170,900,000
Depreciation and Amortization 74,600,000
Capital Expenditure -67,300,000
Unlevered Free Cash Flow 450,089,951
Current Assets 1,322,900,000
Current Cash 413,200,000
Current Liabilities 672,500,000
Current Debt 200,000
Non-Cash Working Capital (NCWC) 237,400,000
Change in NCWC 78,600,000
EBIT 490,200,000
Tax Provision 153,800,000
Depreciation and Amortization 62,600,000
Capital Expenditure -83,700,000
Unlevered Free Cash Flow 378,125,641
Current Assets 1,436,500,000
Current Cash 756,800,000
Current Liabilities 520,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 158,800,000
Change in NCWC -4,900,000
EBIT 388,700,000
Tax Provision 121,500,000
Depreciation and Amortization 45,800,000
Capital Expenditure -56,500,000
Unlevered Free Cash Flow 235,652,240
Current Assets 1,186,700,000
Current Cash 552,500,000
Current Liabilities 470,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 163,700,000
Change in NCWC -4,500,000
EBIT 298,900,000
Tax Provision 89,900,000
Depreciation and Amortization 43,400,000
Capital Expenditure -35,300,000
Unlevered Free Cash Flow 201,366,729
Current Assets 913,500,000
Current Cash 359,100,000
Current Liabilities 386,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 168,200,000
Change in NCWC 38,500,000
EBIT 230,000,000
Tax Provision 65,700,000
Depreciation and Amortization 40,800,000
Capital Expenditure -40,600,000
Unlevered Free Cash Flow 190,445,209
Current Assets 779,000,000
Current Cash 284,500,000
Current Liabilities 364,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 129,700,000
Change in NCWC 800,000
EBIT 221,300,000
Tax Provision 62,700,000
Depreciation and Amortization 39,800,000
Capital Expenditure -31,400,000
Unlevered Free Cash Flow 152,983,184

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