DCF Tool

BRC

Brady Corp. – Commercial Printing (except Screen and Books)
brady corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. brady's products help customers increase safety, security, productivity and performance and include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials. founded in 1914, the company has millions of customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. brady is headquartered in milwaukee, wisconsin and employs approximately 6,500 people at operations in the americas, europe and asia-pacific. brady's fiscal 2015 sales were approximately $1.17 billion. brady stock trades on the new york stock exchange under the symbol brc. brady's mission is to identify and protect premises, products and people. brady's vision is to be the market leader in all our businesses in order to achieve sustainable long-term
Analysis Results
Intrinsic Value $132.82
Latest Price $56.28
Relative Value 58% 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 6.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.3%, 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)
2024 171 164
2025 182 167
2026 194 171
2027 206 174
2028 219 177
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 6560 million. This corresponds to a present value of 5100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 853 million. Adding in the terminal value gives a total present value of 5950 million.

There are presently 44.8 million outstanding shares, so the intrinsic value per share is 132.82.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 524,820,000
Current Cash 151,532,000
Current Liabilities 258,036,000
Current Debt 0
Non-Cash Working Capital (NCWC) 115,252,000
Change in NCWC -13,573,000
EBIT 225,213,000
Tax Provision 50,839,000
Depreciation and Amortization 32,370,000
Capital Expenditure -19,226,000
Unlevered Free Cash Flow 174,053,797
Current Assets 498,068,000
Current Cash 114,069,000
Current Liabilities 255,174,000
Current Debt 0
Non-Cash Working Capital (NCWC) 128,825,000
Change in NCWC 68,640,000
EBIT 193,012,000
Tax Provision 42,001,000
Depreciation and Amortization 34,182,000
Capital Expenditure -43,138,000
Unlevered Free Cash Flow 210,469,221
Current Assets 465,104,000
Current Cash 147,335,000
Current Liabilities 257,584,000
Current Debt 0
Non-Cash Working Capital (NCWC) 60,185,000
Change in NCWC -45,732,000
EBIT 167,127,000
Tax Provision 35,610,000
Depreciation and Amortization 25,483,000
Capital Expenditure -27,189,000
Unlevered Free Cash Flow 84,890,215
Current Assets 509,448,000
Current Cash 217,643,000
Current Liabilities 185,888,000
Current Debt 0
Non-Cash Working Capital (NCWC) 105,917,000
Change in NCWC 3,489,000
EBIT 151,844,000
Tax Provision 28,321,000
Depreciation and Amortization 23,437,000
Capital Expenditure -27,277,000
Unlevered Free Cash Flow 120,980,044
Current Assets 573,279,000
Current Cash 279,072,000
Current Liabilities 241,945,000
Current Debt 50,166,000
Non-Cash Working Capital (NCWC) 102,428,000
Change in NCWC 3,443,000
EBIT 162,428,000
Tax Provision 33,386,000
Depreciation and Amortization 23,799,000
Capital Expenditure -32,825,000
Unlevered Free Cash Flow 123,908,353
Current Assets 471,339,000
Current Cash 181,427,000
Current Liabilities 190,927,000
Current Debt 0
Non-Cash Working Capital (NCWC) 98,985,000
Change in NCWC 9,085,000
EBIT 152,696,000
Tax Provision 60,955,000
Depreciation and Amortization 25,442,000
Capital Expenditure -21,777,000
Unlevered Free Cash Flow 104,217,932
Current Assets 407,814,000
Current Cash 133,944,000
Current Liabilities 187,198,000
Current Debt 3,228,000
Non-Cash Working Capital (NCWC) 89,900,000
Change in NCWC -14,497,000
EBIT 131,015,000
Tax Provision 30,987,000
Depreciation and Amortization 27,303,000
Capital Expenditure -15,167,000
Unlevered Free Cash Flow 96,594,474
Current Assets 407,424,000
Current Cash 141,228,000
Current Liabilities 166,727,000
Current Debt 4,928,000
Non-Cash Working Capital (NCWC) 104,397,000
Change in NCWC -33,371,000
EBIT 117,878,000
Tax Provision 29,235,000
Depreciation and Amortization 32,432,000
Capital Expenditure -17,140,000
Unlevered Free Cash Flow 68,282,576
Current Assets 408,582,000
Current Cash 114,492,000
Current Liabilities 209,247,000
Current Debt 52,925,000
Non-Cash Working Capital (NCWC) 137,768,000
Change in NCWC -56,231,000
EBIT 98,994,000
Tax Provision 20,093,000
Depreciation and Amortization 39,458,000
Capital Expenditure -26,673,000
Unlevered Free Cash Flow -24,031,373
Current Assets 463,842,000
Current Cash 81,834,000
Current Liabilities 291,945,000
Current Debt 103,936,000
Non-Cash Working Capital (NCWC) 193,999,000
Change in NCWC -15,813,000
EBIT 122,352,000
Tax Provision -4,963,000
Depreciation and Amortization 44,598,000
Capital Expenditure -43,398,000
Unlevered Free Cash Flow 107,739,000
Current Assets 512,490,000
Current Cash 91,058,000
Current Liabilities 323,497,000
Current Debt 111,877,000
Non-Cash Working Capital (NCWC) 209,812,000
Change in NCWC 70,612,000
EBIT 144,867,000
Tax Provision 42,070,000
Depreciation and Amortization 48,725,000
Capital Expenditure -35,687,000
Unlevered Free Cash Flow 228,517,000
Current Assets 650,854,000
Current Cash 305,900,000
Current Liabilities 267,018,000
Current Debt 61,264,000
Non-Cash Working Capital (NCWC) 139,200,000
Change in NCWC 11,501,000
EBIT 167,556,000
Tax Provision 40,661,000
Depreciation and Amortization 43,987,000
Capital Expenditure -24,147,000
Unlevered Free Cash Flow 158,236,000

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