DCF Tool

CGNX

Cognex Corp. – Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
Cognex Corporation designs, develops, manufactures, and markets a wide range of image-based products, which use artificial intelligence (AI) techniques that give them the human-like ability to make decisions on what they see. Cognex products include machine vision systems, machine vision sensors, and barcode readers that are used in factories and distribution centers around the world where they eliminate production and shipping errors.
Analysis Results
Intrinsic Value $106.96
Latest Price $48.64
Relative Value 55% 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 16.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.5%, 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 349 340
2023 407 385
2024 474 436
2025 553 494
2026 644 560
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 19300 million. This corresponds to a present value of 16300 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2210 million. Adding in the terminal value gives a total present value of 18500 million.

There are presently 173.0 million outstanding shares, so the intrinsic value per share is 106.96.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 639,798,000
Current Cash 323,616,000
Current Liabilities 188,589,000
Current Debt 0
Non-Cash Working Capital (NCWC) 127,593,000
Change in NCWC 30,512,000
EBIT 315,101,000
Tax Provision 39,019,000
Depreciation and Amortization 20,283,000
Capital Expenditure -15,455,000
Unlevered Free Cash Flow 311,886,826
Current Assets 601,691,000
Current Cash 372,313,000
Current Liabilities 132,297,000
Current Debt 0
Non-Cash Working Capital (NCWC) 97,081,000
Change in NCWC 22,228,000
EBIT 206,024,000
Tax Provision 10,725,000
Depreciation and Amortization 26,503,000
Capital Expenditure -13,303,000
Unlevered Free Cash Flow 229,630,291
Current Assets 607,231,000
Current Cash 411,901,000
Current Liabilities 120,477,000
Current Debt 0
Non-Cash Working Capital (NCWC) 74,853,000
Change in NCWC -78,556,000
EBIT 142,602,000
Tax Provision -40,871,000
Depreciation and Amortization 24,900,000
Capital Expenditure -21,745,000
Unlevered Free Cash Flow 67,201,000
Current Assets 780,326,000
Current Cash 535,560,000
Current Liabilities 91,357,000
Current Debt 0
Non-Cash Working Capital (NCWC) 153,409,000
Change in NCWC 40,916,000
EBIT 221,142,000
Tax Provision 15,307,000
Depreciation and Amortization 21,549,000
Capital Expenditure -37,095,000
Unlevered Free Cash Flow 232,081,497
Current Assets 630,108,000
Current Cash 404,543,000
Current Liabilities 113,072,000
Current Debt 0
Non-Cash Working Capital (NCWC) 112,493,000
Change in NCWC 72,757,000
EBIT 259,319,000
Tax Provision 89,744,000
Depreciation and Amortization 16,991,000
Capital Expenditure -28,754,000
Unlevered Free Cash Flow 233,125,265
Current Assets 526,344,000
Current Cash 420,835,000
Current Liabilities 65,773,000
Current Debt 0
Non-Cash Working Capital (NCWC) 39,736,000
Change in NCWC -9,412,000
EBIT 160,784,000
Tax Provision 18,968,000
Depreciation and Amortization 15,069,000
Capital Expenditure -12,816,000
Unlevered Free Cash Flow 135,557,220
Current Assets 451,598,000
Current Cash 348,443,000
Current Liabilities 54,007,000
Current Debt 0
Non-Cash Working Capital (NCWC) 49,148,000
Change in NCWC 11,366,000
EBIT 121,521,000
Tax Provision 19,298,000
Depreciation and Amortization 14,118,000
Capital Expenditure -18,228,000
Unlevered Free Cash Flow 110,306,022
Current Assets 264,606,000
Current Cash 146,150,000
Current Liabilities 80,674,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,782,000
Change in NCWC -7,781,000
EBIT 143,663,000
Tax Provision 25,912,000
Depreciation and Amortization 12,467,000
Capital Expenditure -20,934,000
Unlevered Free Cash Flow 102,159,427
Current Assets 332,051,000
Current Cash 225,466,000
Current Liabilities 61,022,000
Current Debt 0
Non-Cash Working Capital (NCWC) 45,563,000
Change in NCWC 6,335,000
EBIT 86,368,000
Tax Provision 14,313,000
Depreciation and Amortization 11,102,000
Capital Expenditure -13,380,000
Unlevered Free Cash Flow 76,359,219
Current Assets 239,597,000
Current Cash 150,265,000
Current Liabilities 50,104,000
Current Debt 0
Non-Cash Working Capital (NCWC) 39,228,000
Change in NCWC -9,479,000
EBIT 83,407,000
Tax Provision 18,532,000
Depreciation and Amortization 10,858,000
Capital Expenditure -9,878,000
Unlevered Free Cash Flow 57,065,468

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