DCF Tool

CLX

Clorox Co. – Polish and Other Sanitation Good Manufacturing
The Clorox Company (NYSE: CLX) is a leading multinational manufacturer and marketer of consumer and professional products with about 8,800 employees worldwide and fiscal year 2020 sales of $6.7 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid-Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags and wraps; Kingsford® charcoal; Hidden Valley® dressings and sauces; Brita® water-filtration products; Burt's Bees® natural personal care products; and RenewLife®, Rainbow Light®, Natural Vitality Calm™, NeoCell® and Stop Aging Now® vitamins, minerals and supplements. The company also markets industry-leading products and technologies for professional customers, including those sold under the CloroxPro™ and Clorox Healthcare® brand names. More than 80% of the company's sales are generated from brands that hold the No. 1 or No. 2 market share positions in their categories.
Analysis Results
Intrinsic Value $205.82
Latest Price $128.39
Relative Value 38% 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 2.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.7%, 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)
2023 863 821
2024 886 803
2025 910 785
2026 935 767
2027 960 750
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 28800 million. This corresponds to a present value of 21400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3930 million. Adding in the terminal value gives a total present value of 25300 million.

There are presently 123.0 million outstanding shares, so the intrinsic value per share is 205.82.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,725,000,000
Current Cash 183,000,000
Current Liabilities 1,784,000,000
Current Debt 237,000,000
Non-Cash Working Capital (NCWC) -5,000,000
Change in NCWC 241,000,000
EBIT 725,000,000
Tax Provision 136,000,000
Depreciation and Amortization 224,000,000
Capital Expenditure -251,000,000
Unlevered Free Cash Flow 776,561,779
Current Assets 1,829,000,000
Current Cash 319,000,000
Current Liabilities 2,056,000,000
Current Debt 300,000,000
Non-Cash Working Capital (NCWC) -246,000,000
Change in NCWC 23,000,000
EBIT 1,230,000,000
Tax Provision 181,000,000
Depreciation and Amortization 211,000,000
Capital Expenditure -331,000,000
Unlevered Free Cash Flow 885,633,333
Current Assets 2,020,000,000
Current Cash 871,000,000
Current Liabilities 1,418,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -269,000,000
Change in NCWC -419,000,000
EBIT 1,281,000,000
Tax Provision 246,000,000
Depreciation and Amortization 180,000,000
Capital Expenditure -254,000,000
Unlevered Free Cash Flow 522,070,886
Current Assets 1,305,000,000
Current Cash 111,000,000
Current Liabilities 1,440,000,000
Current Debt 396,000,000
Non-Cash Working Capital (NCWC) 150,000,000
Change in NCWC -29,000,000
EBIT 1,122,000,000
Tax Provision 204,000,000
Depreciation and Amortization 180,000,000
Capital Expenditure -206,000,000
Unlevered Free Cash Flow 843,476,562
Current Assets 1,311,000,000
Current Cash 131,000,000
Current Liabilities 1,200,000,000
Current Debt 199,000,000
Non-Cash Working Capital (NCWC) 179,000,000
Change in NCWC 88,000,000
EBIT 1,137,000,000
Tax Provision 231,000,000
Depreciation and Amortization 166,000,000
Capital Expenditure -194,000,000
Unlevered Free Cash Flow 947,809,297
Current Assets 1,514,000,000
Current Cash 418,000,000
Current Liabilities 1,809,000,000
Current Debt 804,000,000
Non-Cash Working Capital (NCWC) 91,000,000
Change in NCWC 42,000,000
EBIT 1,136,000,000
Tax Provision 330,000,000
Depreciation and Amortization 163,000,000
Capital Expenditure -231,000,000
Unlevered Free Cash Flow 747,095,837
Current Assets 1,485,000,000
Current Cash 401,000,000
Current Liabilities 1,558,000,000
Current Debt 523,000,000
Non-Cash Working Capital (NCWC) 49,000,000
Change in NCWC 12,000,000
EBIT 1,071,000,000
Tax Provision 335,000,000
Depreciation and Amortization 165,000,000
Capital Expenditure -172,000,000
Unlevered Free Cash Flow 711,010,172
Current Assets 1,429,000,000
Current Cash 382,000,000
Current Liabilities 1,405,000,000
Current Debt 395,000,000
Non-Cash Working Capital (NCWC) 37,000,000
Change in NCWC -109,000,000
EBIT 1,027,000,000
Tax Provision 315,000,000
Depreciation and Amortization 169,000,000
Capital Expenditure -125,000,000
Unlevered Free Cash Flow 610,745,928
Current Assets 1,395,000,000
Current Cash 329,000,000
Current Liabilities 1,638,000,000
Current Debt 718,000,000
Non-Cash Working Capital (NCWC) 146,000,000
Change in NCWC -43,000,000
EBIT 971,000,000
Tax Provision 299,000,000
Depreciation and Amortization 180,000,000
Capital Expenditure -138,000,000
Unlevered Free Cash Flow 632,800,232
Current Assets 1,420,000,000
Current Cash 299,000,000
Current Liabilities 1,134,000,000
Current Debt 202,000,000
Non-Cash Working Capital (NCWC) 189,000,000
Change in NCWC -9,000,000
EBIT 978,000,000
Tax Provision 279,000,000
Depreciation and Amortization 182,000,000
Capital Expenditure -194,000,000
Unlevered Free Cash Flow 637,114,888
Current Assets 1,376,000,000
Current Cash 267,000,000
Current Liabilities 2,061,000,000
Current Debt 1,150,000,000
Non-Cash Working Capital (NCWC) 198,000,000
Change in NCWC 84,000,000
EBIT 907,000,000
Tax Provision 248,000,000
Depreciation and Amortization 178,000,000
Capital Expenditure -192,000,000
Unlevered Free Cash Flow 692,630,847

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