DCF Tool

CR

Crane Holdings Co. – Iron and Steel Forging
Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane Co. provides products and solutions to customers in the chemicals, oil & gas, power, automated payment solutions, banknote design and production and aerospace & defense markets, along with a wide range of general industrial and consumer related end markets. The Company has four business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. Crane Co. has approximately 11,000 employees in the Americas, Europe, the Middle East, Asia and Australia.
Analysis Results
Intrinsic Value $453.90
Latest Price $87.54
Relative Value 81% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
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 10.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.9%, 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 (million) Present value (million)
2022 612 589
2023 678 629
2024 752 671
2025 834 717
2026 924 765
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 27700 million. This corresponds to a present value of 22100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3370 million. Adding in the terminal value gives a total present value of 25500 million.

There are presently 56.1 million outstanding shares, so the intrinsic value per share is 453.9.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,744,200,000
Current Cash 478,600,000
Current Liabilities 795,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 470,400,000
Change in NCWC 128,600,000
EBIT 485,400,000
Tax Provision 82,900,000
Depreciation and Amortization 119,500,000
Capital Expenditure -51,700,000
Unlevered Free Cash Flow 597,493,148
Current Assets 1,573,700,000
Current Cash 551,000,000
Current Liabilities 1,056,600,000
Current Debt 375,700,000
Non-Cash Working Capital (NCWC) 341,800,000
Change in NCWC 3,100,000
EBIT 308,100,000
Tax Provision 43,400,000
Depreciation and Amortization 127,500,000
Capital Expenditure -34,100,000
Unlevered Free Cash Flow 345,038,574
Current Assets 1,499,900,000
Current Cash 393,900,000
Current Liabilities 916,700,000
Current Debt 149,400,000
Non-Cash Working Capital (NCWC) 338,700,000
Change in NCWC 52,500,000
EBIT 481,000,000
Tax Provision 37,100,000
Depreciation and Amortization 113,500,000
Capital Expenditure -68,800,000
Unlevered Free Cash Flow 473,659,285
Current Assets 1,362,900,000
Current Cash 343,400,000
Current Liabilities 740,200,000
Current Debt 6,900,000
Non-Cash Working Capital (NCWC) 286,200,000
Change in NCWC 62,000,000
EBIT 468,300,000
Tax Provision 75,900,000
Depreciation and Amortization 120,000,000
Capital Expenditure -108,800,000
Unlevered Free Cash Flow 455,102,406
Current Assets 1,518,500,000
Current Cash 706,200,000
Current Liabilities 837,500,000
Current Debt 249,400,000
Non-Cash Working Capital (NCWC) 224,200,000
Change in NCWC -61,000,000
EBIT 422,700,000
Tax Provision 195,000,000
Depreciation and Amortization 72,700,000
Capital Expenditure -49,000,000
Unlevered Free Cash Flow 161,110,204
Current Assets 1,315,700,000
Current Cash 509,700,000
Current Liabilities 520,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 285,200,000
Change in NCWC -31,600,000
EBIT 392,700,000
Tax Provision 40,300,000
Depreciation and Amortization 67,400,000
Capital Expenditure -51,500,000
Unlevered Free Cash Flow 280,559,963
Current Assets 1,203,500,000
Current Cash 363,500,000
Current Liabilities 572,800,000
Current Debt 49,600,000
Non-Cash Working Capital (NCWC) 316,800,000
Change in NCWC 7,101,000
EBIT 387,900,000
Tax Provision 106,500,000
Depreciation and Amortization 67,000,000
Capital Expenditure -39,600,000
Unlevered Free Cash Flow 299,633,243
Current Assets 1,195,184,000
Current Cash 346,266,000
Current Liabilities 640,025,000
Current Debt 100,806,000
Non-Cash Working Capital (NCWC) 309,699,000
Change in NCWC -25,674,000
EBIT 355,280,000
Tax Provision 87,587,000
Depreciation and Amortization 75,766,000
Capital Expenditure -43,732,000
Unlevered Free Cash Flow 250,961,553
Current Assets 1,149,092,000
Current Cash 270,643,000
Current Liabilities 668,902,000
Current Debt 125,826,000
Non-Cash Working Capital (NCWC) 335,373,000
Change in NCWC 89,564,000
EBIT 347,876,000
Tax Provision 105,065,000
Depreciation and Amortization 54,837,000
Capital Expenditure -29,461,000
Unlevered Free Cash Flow 350,706,189
Current Assets 1,180,521,000
Current Cash 423,947,000
Current Liabilities 511,888,000
Current Debt 1,123,000
Non-Cash Working Capital (NCWC) 245,809,000
Change in NCWC -9,351,000
EBIT 328,904,000
Tax Provision 88,416,000
Depreciation and Amortization 57,263,000
Capital Expenditure -29,308,000
Unlevered Free Cash Flow 245,329,977

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.