DCF Tool

CACC

Credit Acceptance Corp. – Credit Card Issuing
Since 1972, Credit Acceptance has offered financing programs that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Its financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for its financing programs, but who actually end up qualifying for traditional financing.
Analysis Results
Intrinsic Value $61,724.54
Latest Price $438.00
Relative Value 99% 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 54.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 54.9%, 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 5.34 5.14
2023 8.28 7.66
2024 12.8 11.4
2025 19.8 17.0
2026 30.7 25.3
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 922 billion. This corresponds to a present value of 731 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 66.5 billion. Adding in the terminal value gives a total present value of 798 billion.

There are presently 12.9 million outstanding shares, so the intrinsic value per share is 61724.54.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,883,600,000
Current Cash 0
Current Liabilities 9,583,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,300,600,000
Change in NCWC 1,698,900,000
EBIT 2,521,800,000
Tax Provision 605,200,000
Depreciation and Amortization 52,600,000
Capital Expenditure -15,200,000
Unlevered Free Cash Flow 3,652,900,000
Current Assets 7,397,200,000
Current Cash 0
Current Liabilities 4,795,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,601,700,000
Change in NCWC 18,700,000
EBIT 549,500,000
Tax Provision 128,500,000
Depreciation and Amortization 23,800,000
Capital Expenditure -8,500,000
Unlevered Free Cash Flow 455,000,000
Current Assets 7,328,400,000
Current Cash 0
Current Liabilities 4,745,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,583,000,000
Change in NCWC 433,700,000
EBIT 855,900,000
Tax Provision 199,800,000
Depreciation and Amortization 22,400,000
Capital Expenditure -26,800,000
Unlevered Free Cash Flow 1,085,400,000
Current Assets 6,159,100,000
Current Cash 0
Current Liabilities 4,009,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,149,300,000
Change in NCWC 480,000,000
EBIT 755,100,000
Tax Provision 181,100,000
Depreciation and Amortization 19,500,000
Capital Expenditure -25,100,000
Unlevered Free Cash Flow 1,048,400,000
Current Assets 4,931,700,000
Current Cash 0
Current Liabilities 3,262,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,669,300,000
Change in NCWC 267,000,000
EBIT 583,800,000
Tax Provision 113,600,000
Depreciation and Amortization 16,400,000
Capital Expenditure -8,400,000
Unlevered Free Cash Flow 745,200,000
Current Assets 4,173,500,000
Current Cash 0
Current Liabilities 2,771,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,402,300,000
Change in NCWC 281,200,000
EBIT 531,200,000
Tax Provision 198,400,000
Depreciation and Amortization 15,300,000
Capital Expenditure -5,500,000
Unlevered Free Cash Flow 623,800,000
Current Assets 3,333,500,000
Current Cash 0
Current Liabilities 2,212,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,121,100,000
Change in NCWC 259,400,000
EBIT 474,500,000
Tax Provision 174,800,000
Depreciation and Amortization 14,200,000
Capital Expenditure -4,000,000
Unlevered Free Cash Flow 569,300,000
Current Assets 2,731,500,000
Current Cash 0
Current Liabilities 1,869,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 861,700,000
Change in NCWC 4,800,000
EBIT 420,900,000
Tax Provision 154,700,000
Depreciation and Amortization 13,200,000
Capital Expenditure -4,300,000
Unlevered Free Cash Flow 279,900,000
Current Assets 2,383,000,000
Current Cash 0
Current Liabilities 1,526,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 856,900,000
Change in NCWC 137,700,000
EBIT 398,200,000
Tax Provision 145,100,000
Depreciation and Amortization 13,200,000
Capital Expenditure -5,600,000
Unlevered Free Cash Flow 398,400,000
Current Assets 2,082,100,000
Current Cash 0
Current Liabilities 1,362,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 719,200,000
Change in NCWC 105,173,000
EBIT 343,100,000
Tax Provision 123,400,000
Depreciation and Amortization 12,200,000
Capital Expenditure -8,800,000
Unlevered Free Cash Flow 328,273,000

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