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Badger Meter Inc. – Totalizing Fluid Meter and Counting Device Manufacturing
With more than a century of water technology innovation, Badger Meter is a global provider of industry leading water solutions encompassing flow measurement, quality and other system parameters. These offerings provide the customers with the data and analytics essential to optimize their operations and contribute to the sustainable use and protection of the world's most precious resource.
Analysis Results
Intrinsic Value $49.25
Latest Price $102.42
Relative Value 108% overvalued
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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 11.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.2%, 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 (million) Present value (million)
2022 82.7 75.7
2023 91.9 77.0
2024 102 78.4
2025 114 79.8
2026 126 81.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1780 million. This corresponds to a present value of 1050 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 392 million. Adding in the terminal value gives a total present value of 1440 million.

There are presently 29.3 million outstanding shares, so the intrinsic value per share is 49.25.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 261,360,000
Current Cash 87,174,000
Current Liabilities 82,146,000
Current Debt 0
Non-Cash Working Capital (NCWC) 92,040,000
Change in NCWC 8,661,000
EBIT 78,723,000
Tax Provision 17,739,000
Depreciation and Amortization 27,862,000
Capital Expenditure -6,746,000
Unlevered Free Cash Flow 90,738,437
Current Assets 220,851,000
Current Cash 72,273,000
Current Liabilities 65,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) 83,379,000
Change in NCWC -15,077,000
EBIT 65,156,000
Tax Provision 15,638,000
Depreciation and Amortization 25,216,000
Capital Expenditure -9,059,000
Unlevered Free Cash Flow 50,555,885
Current Assets 200,094,000
Current Cash 48,871,000
Current Liabilities 57,247,000
Current Debt 4,480,000
Non-Cash Working Capital (NCWC) 98,456,000
Change in NCWC -11,162,000
EBIT 62,148,000
Tax Provision 14,430,000
Depreciation and Amortization 24,146,000
Capital Expenditure -7,496,000
Unlevered Free Cash Flow 53,079,283
Current Assets 164,659,000
Current Cash 13,086,000
Current Liabilities 60,015,000
Current Debt 18,060,000
Non-Cash Working Capital (NCWC) 109,618,000
Change in NCWC 10,718,000
EBIT 56,869,000
Tax Provision 8,062,000
Depreciation and Amortization 24,315,000
Capital Expenditure -8,643,000
Unlevered Free Cash Flow 70,470,930
Current Assets 158,623,000
Current Cash 11,164,000
Current Liabilities 93,109,000
Current Debt 44,550,000
Non-Cash Working Capital (NCWC) 98,900,000
Change in NCWC -6,886,000
EBIT 55,622,000
Tax Provision 20,262,000
Depreciation and Amortization 24,398,000
Capital Expenditure -15,069,000
Unlevered Free Cash Flow 37,511,447
Current Assets 151,012,000
Current Cash 7,338,000
Current Liabilities 75,838,000
Current Debt 37,950,000
Non-Cash Working Capital (NCWC) 105,786,000
Change in NCWC -2,195,000
EBIT 50,765,000
Tax Provision 17,549,000
Depreciation and Amortization 22,442,000
Capital Expenditure -10,596,000
Unlevered Free Cash Flow 42,542,735
Current Assets 149,328,000
Current Cash 8,163,000
Current Liabilities 104,544,000
Current Debt 71,360,000
Non-Cash Working Capital (NCWC) 107,981,000
Change in NCWC 4,680,000
EBIT 42,369,000
Tax Provision 15,214,000
Depreciation and Amortization 20,599,000
Capital Expenditure -19,766,000
Unlevered Free Cash Flow 32,218,071
Current Assets 141,105,000
Current Cash 6,656,000
Current Liabilities 107,075,000
Current Debt 75,927,000
Non-Cash Working Capital (NCWC) 103,301,000
Change in NCWC 11,397,000
EBIT 46,047,000
Tax Provision 15,234,000
Depreciation and Amortization 15,664,000
Capital Expenditure -12,332,000
Unlevered Free Cash Flow 45,157,011
Current Assets 127,163,000
Current Cash 7,263,000
Current Liabilities 98,041,000
Current Debt 70,045,000
Non-Cash Working Capital (NCWC) 91,904,000
Change in NCWC 4,434,000
EBIT 39,107,000
Tax Provision 13,392,000
Depreciation and Amortization 13,494,000
Capital Expenditure -14,311,000
Unlevered Free Cash Flow 28,945,133
Current Assets 121,374,000
Current Cash 6,554,000
Current Liabilities 94,080,000
Current Debt 66,730,000
Non-Cash Working Capital (NCWC) 87,470,000
Change in NCWC 11,873,000
EBIT 44,469,000
Tax Provision 15,439,000
Depreciation and Amortization 12,054,000
Capital Expenditure -8,202,000
Unlevered Free Cash Flow 44,400,554

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