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Cooper Tire & Rubber Co. – Tire Manufacturing (except Retreading)
Cooper Tire & Rubber Company is the parent company of a global family of companies that specializes in the design, manufacture, marketing and sale of passenger car, light truck, medium truck, motorcycle and racing tires. Cooper's headquarters is in Findlay, Ohio, with manufacturing, sales, distribution, technical and design operations within its family of companies located in more than one dozen countries around the world.
Analysis Results
Intrinsic Value $22.85
Latest Price $60.17
Relative Value 163% overvalued
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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 -10.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -10.8%, 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)
2021 61.3 59.1
2022 54.7 50.8
2023 48.8 43.6
2024 43.5 37.5
2025 38.8 32.2
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 1160 million. This corresponds to a present value of 931 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 223 million. Adding in the terminal value gives a total present value of 1150 million.

There are presently 50.5 million outstanding shares, so the intrinsic value per share is 22.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,582,215,000
Current Cash 625,758,000
Current Liabilities 648,110,000
Current Debt 39,991,000
Non-Cash Working Capital (NCWC) 348,338,000
Change in NCWC -131,797,000
EBIT 243,285,000
Tax Provision 46,999,000
Depreciation and Amortization 158,847,000
Capital Expenditure -151,198,000
Unlevered Free Cash Flow 59,241,913
Current Assets 1,452,980,000
Current Cash 391,332,000
Current Liabilities 604,074,000
Current Debt 22,561,000
Non-Cash Working Capital (NCWC) 480,135,000
Change in NCWC -50,047,000
EBIT 183,273,000
Tax Provision 11,355,000
Depreciation and Amortization 148,054,000
Capital Expenditure -202,722,000
Unlevered Free Cash Flow 59,582,646
Current Assets 1,456,732,000
Current Cash 356,254,000
Current Liabilities 760,344,000
Current Debt 190,048,000
Non-Cash Working Capital (NCWC) 530,182,000
Change in NCWC -21,961,000
EBIT 199,072,000
Tax Provision 33,495,000
Depreciation and Amortization 147,161,000
Capital Expenditure -193,299,000
Unlevered Free Cash Flow 72,512,246
Current Assets 1,388,317,000
Current Cash 371,684,000
Current Liabilities 505,353,000
Current Debt 40,863,000
Non-Cash Working Capital (NCWC) 552,143,000
Change in NCWC 108,155,000
EBIT 271,724,000
Tax Provision 147,180,000
Depreciation and Amortization 140,228,000
Capital Expenditure -197,186,000
Unlevered Free Cash Flow 158,967,578
Current Assets 1,420,518,000
Current Cash 504,423,000
Current Liabilities 500,814,000
Current Debt 28,707,000
Non-Cash Working Capital (NCWC) 443,988,000
Change in NCWC 34,481,000
EBIT 396,649,000
Tax Provision 115,799,000
Depreciation and Amortization 130,257,000
Capital Expenditure -175,437,000
Unlevered Free Cash Flow 260,827,598
Current Assets 1,334,630,000
Current Cash 505,157,000
Current Liabilities 433,003,000
Current Debt 13,037,000
Non-Cash Working Capital (NCWC) 409,507,000
Change in NCWC -21,694,000
EBIT 354,480,000
Tax Provision 118,224,000
Depreciation and Amortization 121,408,000
Capital Expenditure -182,544,000
Unlevered Free Cash Flow 146,187,333
Current Assets 1,427,552,000
Current Cash 551,652,000
Current Liabilities 511,365,000
Current Debt 66,666,000
Non-Cash Working Capital (NCWC) 431,201,000
Change in NCWC -101,248,000
EBIT 300,458,000
Tax Provision 111,697,000
Depreciation and Amortization 139,166,000
Capital Expenditure -145,041,000
Unlevered Free Cash Flow 97,041,089
Current Assets 1,454,790,000
Current Cash 397,731,000
Current Liabilities 564,583,000
Current Debt 39,973,000
Non-Cash Working Capital (NCWC) 532,449,000
Change in NCWC 54,557,000
EBIT 240,714,000
Tax Provision 79,406,000
Depreciation and Amortization 134,751,000
Capital Expenditure -180,448,000
Unlevered Free Cash Flow 159,824,053
Current Assets 1,449,695,000
Current Cash 351,817,000
Current Liabilities 655,141,000
Current Debt 35,155,000
Non-Cash Working Capital (NCWC) 477,892,000
Change in NCWC -54,211,000
EBIT 396,962,000
Tax Provision 116,024,000
Depreciation and Amortization 128,916,000
Capital Expenditure -187,336,000
Unlevered Free Cash Flow 159,328,641

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