DCF Tool

CHE

Chemed Corp. – Home Health Care Services
Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care and Roto-Rooter is the nation's leading provider of plumbing and drain cleaning services.
Analysis Results
Intrinsic Value $749.83
Latest Price $522.05
Relative Value 30% 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 15.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.4%, 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 296 279
2023 341 304
2024 394 331
2025 455 361
2026 525 393
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 13400 million. This corresponds to a present value of 9480 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1670 million. Adding in the terminal value gives a total present value of 11200 million.

There are presently 14.9 million outstanding shares, so the intrinsic value per share is 749.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 230,286,000
Current Cash 32,895,000
Current Liabilities 302,399,000
Current Debt 0
Non-Cash Working Capital (NCWC) -105,008,000
Change in NCWC 27,372,000
EBIT 344,025,000
Tax Provision 81,764,000
Depreciation and Amortization 59,051,000
Capital Expenditure -58,675,000
Unlevered Free Cash Flow 291,476,865
Current Assets 329,403,000
Current Cash 162,675,000
Current Liabilities 299,108,000
Current Debt 0
Non-Cash Working Capital (NCWC) -132,380,000
Change in NCWC -64,473,000
EBIT 314,585,000
Tax Provision 76,524,000
Depreciation and Amortization 56,583,000
Capital Expenditure -58,831,000
Unlevered Free Cash Flow 187,071,296
Current Assets 190,671,000
Current Cash 6,158,000
Current Liabilities 262,220,000
Current Debt 9,800,000
Non-Cash Working Capital (NCWC) -67,907,000
Change in NCWC -45,046,000
EBIT 266,512,000
Tax Provision 41,686,000
Depreciation and Amortization 45,205,000
Capital Expenditure -53,022,000
Unlevered Free Cash Flow 171,181,733
Current Assets 159,840,000
Current Cash 4,831,000
Current Liabilities 191,670,000
Current Debt 13,800,000
Non-Cash Working Capital (NCWC) -22,861,000
Change in NCWC -19,564,000
EBIT 244,932,000
Tax Provision 34,056,000
Depreciation and Amortization 38,863,000
Capital Expenditure -52,872,000
Unlevered Free Cash Flow 176,545,126
Current Assets 176,046,000
Current Cash 11,121,000
Current Liabilities 193,522,000
Current Debt 25,300,000
Non-Cash Working Capital (NCWC) -3,297,000
Change in NCWC -3,405,000
EBIT 203,915,000
Tax Provision 18,740,000
Depreciation and Amortization 35,625,000
Capital Expenditure -64,300,000
Unlevered Free Cash Flow 139,150,556
Current Assets 169,900,000
Current Cash 15,310,000
Current Liabilities 171,832,000
Current Debt 17,350,000
Non-Cash Working Capital (NCWC) 108,000
Change in NCWC 18,563,000
EBIT 183,240,000
Tax Provision 68,311,000
Depreciation and Amortization 34,638,000
Capital Expenditure -39,772,000
Unlevered Free Cash Flow 125,971,316
Current Assets 150,808,000
Current Cash 14,727,000
Current Liabilities 171,336,000
Current Debt 16,800,000
Non-Cash Working Capital (NCWC) -18,455,000
Change in NCWC -20,083,000
EBIT 184,458,000
Tax Provision 69,852,000
Depreciation and Amortization 33,499,000
Capital Expenditure -44,135,000
Unlevered Free Cash Flow 82,207,071
Current Assets 174,564,000
Current Cash 14,132,000
Current Liabilities 175,554,000
Current Debt 16,750,000
Non-Cash Working Capital (NCWC) 1,628,000
Change in NCWC 41,006,000
EBIT 168,419,000
Tax Provision 63,437,000
Depreciation and Amortization 33,072,000
Capital Expenditure -43,571,000
Unlevered Free Cash Flow 133,280,939
Current Assets 224,656,000
Current Cash 84,418,000
Current Liabilities 363,986,000
Current Debt 184,370,000
Non-Cash Working Capital (NCWC) -39,378,000
Change in NCWC -22,896,000
EBIT 159,615,000
Tax Provision 46,602,000
Depreciation and Amortization 32,388,000
Capital Expenditure -29,324,000
Unlevered Free Cash Flow 79,713,240
Current Assets 197,671,000
Current Cash 69,531,000
Current Liabilities 156,822,000
Current Debt 12,200,000
Non-Cash Working Capital (NCWC) -16,482,000
Change in NCWC 5,946,000
EBIT 156,419,000
Tax Provision 56,515,000
Depreciation and Amortization 30,521,000
Capital Expenditure -35,252,000
Unlevered Free Cash Flow 97,010,763

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