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BLD

TopBuild Corp – All Other Specialty Trade Contractors
TopBuild Corp., a Fortune 1000 Company headquartered in Daytona Beach, Florida, is a leading installer and distributor of insulation and building material products to the U.S. construction industry. It provides insulation and building material services nationwide through TruTeamĀ®, which has close to 200 branches, and through Service PartnersĀ® which distributes insulation and building material products from over 75 branches. It leverages its national footprint to gain economies of scale while capitalizing on its local market presence to forge strong relationships with its customers.
Analysis Results
Intrinsic Value $1,329.11
Latest Price $204.98
Relative Value 85% 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 50.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 50.2%, 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 0.846 0.774
2023 1.27 1.06
2024 1.91 1.46
2025 2.87 2.01
2026 4.31 2.76
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 59.8 billion. This corresponds to a present value of 35.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.06 billion. Adding in the terminal value gives a total present value of 43.0 billion.

There are presently 32.4 million outstanding shares, so the intrinsic value per share is 1329.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,187,691,000
Current Cash 139,779,000
Current Liabilities 733,426,000
Current Debt 41,027,000
Non-Cash Working Capital (NCWC) 355,513,000
Change in NCWC 222,266,000
EBIT 476,419,000
Tax Provision 109,427,000
Depreciation and Amortization 79,390,000
Capital Expenditure -55,546,000
Unlevered Free Cash Flow 602,252,281
Current Assets 936,405,000
Current Cash 330,007,000
Current Liabilities 496,477,000
Current Debt 23,326,000
Non-Cash Working Capital (NCWC) 133,247,000
Change in NCWC -19,291,000
EBIT 355,046,000
Tax Provision 76,067,000
Depreciation and Amortization 62,410,000
Capital Expenditure -40,938,000
Unlevered Free Cash Flow 273,636,408
Current Assets 779,827,000
Current Cash 184,807,000
Current Liabilities 476,754,000
Current Debt 34,272,000
Non-Cash Working Capital (NCWC) 152,538,000
Change in NCWC -33,822,000
EBIT 289,523,000
Tax Provision 62,783,000
Depreciation and Amortization 52,700,000
Capital Expenditure -45,536,000
Unlevered Free Cash Flow 191,238,923
Current Assets 704,697,000
Current Cash 100,929,000
Current Liabilities 444,260,000
Current Debt 26,852,000
Non-Cash Working Capital (NCWC) 186,360,000
Change in NCWC 70,190,000
EBIT 208,953,000
Tax Provision 46,072,000
Depreciation and Amortization 39,419,000
Capital Expenditure -52,504,000
Unlevered Free Cash Flow 212,819,034
Current Assets 511,592,000
Current Cash 56,521,000
Current Liabilities 351,401,000
Current Debt 12,500,000
Non-Cash Working Capital (NCWC) 116,170,000
Change in NCWC 29,925,000
EBIT 166,864,000
Tax Provision -30,093,000
Depreciation and Amortization 16,453,000
Capital Expenditure -25,308,000
Unlevered Free Cash Flow 187,934,000
Current Assets 526,553,000
Current Cash 134,375,000
Current Liabilities 325,933,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 86,245,000
Change in NCWC 30,412,000
EBIT 121,604,000
Tax Provision 43,667,000
Depreciation and Amortization 12,011,000
Capital Expenditure -14,156,000
Unlevered Free Cash Flow 104,201,912

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