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Cabot Corp. – Other Basic Inorganic Chemical Manufacturing
Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of carbon black, specialty carbons, activated carbon, elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed silica and aerogel.
Analysis Results
Intrinsic Value $389.00
Latest Price $71.09
Relative Value 82% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 23.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.9%, 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)
2023 0.791 0.727
2024 0.979 0.828
2025 1.21 0.944
2026 1.5 1.07
2027 1.86 1.22
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 28.2 billion. This corresponds to a present value of 17.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.8 billion. Adding in the terminal value gives a total present value of 21.8 billion.

There are presently 56.1 million outstanding shares, so the intrinsic value per share is 389.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,820,000,000
Current Cash 206,000,000
Current Liabilities 1,105,000,000
Current Debt 354,000,000
Non-Cash Working Capital (NCWC) 863,000,000
Change in NCWC 308,000,000
EBIT 582,000,000
Tax Provision 102,000,000
Depreciation and Amortization 146,000,000
Capital Expenditure -211,000,000
Unlevered Free Cash Flow 652,930,434
Current Assets 1,425,000,000
Current Cash 168,000,000
Current Liabilities 1,147,000,000
Current Debt 445,000,000
Non-Cash Working Capital (NCWC) 555,000,000
Change in NCWC 236,000,000
EBIT 457,000,000
Tax Provision 123,000,000
Depreciation and Amortization 160,000,000
Capital Expenditure -195,000,000
Unlevered Free Cash Flow 520,564,792
Current Assets 978,000,000
Current Cash 151,000,000
Current Liabilities 529,000,000
Current Debt 21,000,000
Non-Cash Working Capital (NCWC) 319,000,000
Change in NCWC -163,000,000
EBIT 154,000,000
Tax Provision 191,000,000
Depreciation and Amortization 158,000,000
Capital Expenditure -200,000,000
Unlevered Free Cash Flow -51,000,000
Current Assets 1,210,000,000
Current Cash 169,000,000
Current Liabilities 599,000,000
Current Debt 40,000,000
Non-Cash Working Capital (NCWC) 482,000,000
Change in NCWC -87,000,000
EBIT 336,000,000
Tax Provision 70,000,000
Depreciation and Amortization 148,000,000
Capital Expenditure -224,000,000
Unlevered Free Cash Flow 81,125,000
Current Assets 1,386,000,000
Current Cash 175,000,000
Current Liabilities 952,000,000
Current Debt 310,000,000
Non-Cash Working Capital (NCWC) 569,000,000
Change in NCWC 66,000,000
EBIT 412,000,000
Tax Provision 193,000,000
Depreciation and Amortization 149,000,000
Capital Expenditure -229,000,000
Unlevered Free Cash Flow 205,000,000
Current Assets 1,262,000,000
Current Cash 280,000,000
Current Liabilities 742,000,000
Current Debt 263,000,000
Non-Cash Working Capital (NCWC) 503,000,000
Change in NCWC 4,000,000
EBIT 343,000,000
Tax Provision 29,000,000
Depreciation and Amortization 155,000,000
Capital Expenditure -147,000,000
Unlevered Free Cash Flow 321,281,355
Current Assets 1,089,000,000
Current Cash 200,000,000
Current Liabilities 398,000,000
Current Debt 8,000,000
Non-Cash Working Capital (NCWC) 499,000,000
Change in NCWC -54,000,000
EBIT 253,000,000
Tax Provision 34,000,000
Depreciation and Amortization 161,000,000
Capital Expenditure -112,000,000
Unlevered Free Cash Flow 204,335,025
Current Assets 1,048,000,000
Current Cash 77,000,000
Current Liabilities 441,000,000
Current Debt 23,000,000
Non-Cash Working Capital (NCWC) 553,000,000
Change in NCWC -182,000,000
EBIT 249,000,000
Tax Provision -45,000,000
Depreciation and Amortization 183,000,000
Capital Expenditure -141,000,000
Unlevered Free Cash Flow 109,000,000
Current Assets 1,364,000,000
Current Cash 67,000,000
Current Liabilities 630,000,000
Current Debt 68,000,000
Non-Cash Working Capital (NCWC) 735,000,000
Change in NCWC -99,000,000
EBIT 335,000,000
Tax Provision 92,000,000
Depreciation and Amortization 201,000,000
Capital Expenditure -171,000,000
Unlevered Free Cash Flow 165,935,064
Current Assets 1,495,000,000
Current Cash 95,000,000
Current Liabilities 844,000,000
Current Debt 278,000,000
Non-Cash Working Capital (NCWC) 834,000,000
Change in NCWC 183,000,000
EBIT 274,000,000
Tax Provision 58,000,000
Depreciation and Amortization 190,000,000
Capital Expenditure -264,000,000
Unlevered Free Cash Flow 309,425,925
Current Assets 1,443,000,000
Current Cash 120,000,000
Current Liabilities 919,000,000
Current Debt 247,000,000
Non-Cash Working Capital (NCWC) 651,000,000
Change in NCWC -105,000,000
EBIT 301,000,000
Tax Provision 55,000,000
Depreciation and Amortization 156,000,000
Capital Expenditure -281,000,000
Unlevered Free Cash Flow 6,332,031

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