DCF Tool

B

Barnes Group Inc. – Aircraft Engine and Engine Parts Manufacturing
Barnes Group Inc is a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, serving a wide range of end markets and customers. Its specialized products and services are used in far-reaching applications including aerospace, transportation, manufacturing, automation, healthcare, and packaging. The skilled and dedicated employees of Barnes Group around the globe are committed to the highest performance standards and achieving consistent, sustainable profitable growth. Barnes Group is committed to corporate accountability and furthering environmental, social and governance principles as evidenced by its listing as one of America's Most Responsible Companies by Newsweek.
Analysis Results
Intrinsic Value $79.91
Latest Price $35.53
Relative Value 56% 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 3.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.5%, 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 (million) Present value (million)
2022 182 171
2023 189 166
2024 195 162
2025 202 157
2026 209 153
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4720 million. This corresponds to a present value of 3230 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 809 million. Adding in the terminal value gives a total present value of 4040 million.

There are presently 50.5 million outstanding shares, so the intrinsic value per share is 79.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 680,209,000
Current Cash 102,860,000
Current Liabilities 310,394,000
Current Debt 3,735,000
Non-Cash Working Capital (NCWC) 270,690,000
Change in NCWC -1,522,000
EBIT 150,018,000
Tax Provision 27,944,000
Depreciation and Amortization 91,085,000
Capital Expenditure -34,117,000
Unlevered Free Cash Flow 172,666,304
Current Assets 642,345,000
Current Cash 79,145,000
Current Liabilities 295,379,000
Current Debt 4,391,000
Non-Cash Working Capital (NCWC) 272,212,000
Change in NCWC -65,256,000
EBIT 123,370,000
Tax Provision 38,120,000
Depreciation and Amortization 87,656,000
Capital Expenditure -40,698,000
Unlevered Free Cash Flow 58,736,078
Current Assets 764,390,000
Current Cash 93,805,000
Current Liabilities 342,875,000
Current Debt 9,758,000
Non-Cash Working Capital (NCWC) 337,468,000
Change in NCWC -17,758,000
EBIT 236,448,000
Tax Provision 48,494,000
Depreciation and Amortization 99,059,000
Capital Expenditure -53,286,000
Unlevered Free Cash Flow 209,028,424
Current Assets 806,146,000
Current Cash 100,719,000
Current Liabilities 357,860,000
Current Debt 7,659,000
Non-Cash Working Capital (NCWC) 355,226,000
Change in NCWC 40,557,000
EBIT 231,764,000
Tax Provision 41,309,000
Depreciation and Amortization 94,238,000
Capital Expenditure -57,273,000
Unlevered Free Cash Flow 263,145,422
Current Assets 768,721,000
Current Cash 145,290,000
Current Liabilities 315,761,000
Current Debt 6,999,000
Non-Cash Working Capital (NCWC) 314,669,000
Change in NCWC 41,615,000
EBIT 210,278,000
Tax Provision 136,284,000
Depreciation and Amortization 90,150,000
Capital Expenditure -58,712,000
Unlevered Free Cash Flow 136,894,242
Current Assets 608,492,000
Current Cash 66,447,000
Current Liabilities 301,883,000
Current Debt 32,892,000
Non-Cash Working Capital (NCWC) 273,054,000
Change in NCWC -26,253,000
EBIT 192,178,000
Tax Provision 47,020,000
Depreciation and Amortization 80,154,000
Capital Expenditure -51,677,000
Unlevered Free Cash Flow 144,921,329
Current Assets 611,588,000
Current Cash 83,926,000
Current Liabilities 252,550,000
Current Debt 24,195,000
Non-Cash Working Capital (NCWC) 299,307,000
Change in NCWC 13,150,000
EBIT 168,396,000
Tax Provision 36,566,000
Depreciation and Amortization 78,242,000
Capital Expenditure -66,982,000
Unlevered Free Cash Flow 153,820,725
Current Assets 588,396,000
Current Cash 46,039,000
Current Liabilities 265,090,000
Current Debt 8,890,000
Non-Cash Working Capital (NCWC) 286,157,000
Change in NCWC 23,052,000
EBIT 179,974,000
Tax Provision 45,959,000
Depreciation and Amortization 81,395,000
Capital Expenditure -127,465,000
Unlevered Free Cash Flow 107,277,771
Current Assets 577,196,000
Current Cash 70,856,000
Current Liabilities 300,318,000
Current Debt 57,083,000
Non-Cash Working Capital (NCWC) 263,105,000
Change in NCWC -73,678,000
EBIT 123,201,000
Tax Provision 35,253,000
Depreciation and Amortization 65,052,000
Capital Expenditure -73,943,000
Unlevered Free Cash Flow 257,886
Current Assets 618,540,000
Current Cash 86,356,000
Current Liabilities 199,895,000
Current Debt 4,494,000
Non-Cash Working Capital (NCWC) 336,783,000
Change in NCWC 54,068,000
EBIT 136,556,000
Tax Provision 23,350,000
Depreciation and Amortization 57,360,000
Capital Expenditure -37,787,000
Unlevered Free Cash Flow 183,985,234

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