DCF Tool

CHD

Church & Dwight Co., Inc. – Soap and Other Detergent Manufacturing
Church & Dwight Co., Inc. founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names such as ARM & HAMMER®, TROJAN®, OXICLEAN®, SPINBRUSH®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, L'IL CRITTERS® and VITAFUSION®, BATISTE®, WATERPIK®, FLAWLESS®, and ZICAM®. These thirteen key brands represent approximately 80% of the Company's products sales.
Analysis Results
Intrinsic Value $182.92
Latest Price $88.75
Relative Value 51% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 11.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.6%, 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 1.06 1.01
2023 1.18 1.09
2024 1.31 1.16
2025 1.47 1.25
2026 1.64 1.34
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 49.1 billion. This corresponds to a present value of 38.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.85 billion. Adding in the terminal value gives a total present value of 44.4 billion.

There are presently 243.0 million outstanding shares, so the intrinsic value per share is 182.92.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,233,400,000
Current Cash 240,600,000
Current Liabilities 2,075,200,000
Current Debt 952,200,000
Non-Cash Working Capital (NCWC) -130,200,000
Change in NCWC -22,300,000
EBIT 1,088,500,000
Tax Provision 204,200,000
Depreciation and Amortization 219,100,000
Capital Expenditure -118,800,000
Unlevered Free Cash Flow 951,057,817
Current Assets 1,112,400,000
Current Cash 183,100,000
Current Liabilities 1,388,600,000
Current Debt 351,400,000
Non-Cash Working Capital (NCWC) -107,900,000
Change in NCWC -69,200,000
EBIT 1,036,400,000
Tax Provision 187,900,000
Depreciation and Amortization 189,700,000
Capital Expenditure -98,900,000
Unlevered Free Cash Flow 858,020,989
Current Assets 956,400,000
Current Cash 155,700,000
Current Liabilities 1,092,300,000
Current Debt 252,900,000
Non-Cash Working Capital (NCWC) -38,700,000
Change in NCWC -72,200,000
EBIT 846,800,000
Tax Provision 157,800,000
Depreciation and Amortization 176,400,000
Capital Expenditure -73,700,000
Unlevered Free Cash Flow 704,590,887
Current Assets 1,078,200,000
Current Cash 316,700,000
Current Liabilities 1,326,300,000
Current Debt 598,300,000
Non-Cash Working Capital (NCWC) 33,500,000
Change in NCWC -23,700,000
EBIT 800,900,000
Tax Provision 150,900,000
Depreciation and Amortization 141,100,000
Capital Expenditure -60,400,000
Unlevered Free Cash Flow 689,928,061
Current Assets 1,000,200,000
Current Cash 278,900,000
Current Liabilities 935,000,000
Current Debt 270,900,000
Non-Cash Working Capital (NCWC) 57,200,000
Change in NCWC 63,300,000
EBIT 743,500,000
Tax Provision -50,700,000
Depreciation and Amortization 125,400,000
Capital Expenditure -45,000,000
Unlevered Free Cash Flow 887,200,000
Current Assets 756,800,000
Current Cash 187,800,000
Current Liabilities 1,001,900,000
Current Debt 426,800,000
Non-Cash Working Capital (NCWC) -6,100,000
Change in NCWC -66,600,000
EBIT 733,400,000
Tax Provision 246,900,000
Depreciation and Amortization 107,600,000
Capital Expenditure -49,800,000
Unlevered Free Cash Flow 468,081,427
Current Assets 906,000,000
Current Cash 330,000,000
Current Liabilities 872,700,000
Current Debt 357,200,000
Non-Cash Working Capital (NCWC) 60,500,000
Change in NCWC -40,300,000
EBIT 668,400,000
Tax Provision 225,000,000
Depreciation and Amortization 101,000,000
Capital Expenditure -61,800,000
Unlevered Free Cash Flow 430,614,447
Current Assets 1,032,500,000
Current Cash 423,000,000
Current Liabilities 905,300,000
Current Debt 396,600,000
Non-Cash Working Capital (NCWC) 100,800,000
Change in NCWC -20,700,000
EBIT 652,800,000
Tax Provision 211,000,000
Depreciation and Amortization 91,200,000
Capital Expenditure -70,500,000
Unlevered Free Cash Flow 432,379,452
Current Assets 1,115,800,000
Current Cash 496,900,000
Current Liabilities 651,200,000
Current Debt 153,800,000
Non-Cash Working Capital (NCWC) 121,500,000
Change in NCWC 2,500,000
EBIT 625,000,000
Tax Provision 203,400,000
Depreciation and Amortization 90,500,000
Capital Expenditure -67,100,000
Unlevered Free Cash Flow 438,245,265
Current Assets 933,800,000
Current Cash 343,000,000
Current Liabilities 725,600,000
Current Debt 253,800,000
Non-Cash Working Capital (NCWC) 119,000,000
Change in NCWC -3,800,000
EBIT 554,000,000
Tax Provision 192,700,000
Depreciation and Amortization 85,000,000
Capital Expenditure -74,500,000
Unlevered Free Cash Flow 363,915,115

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.