DCF Tool

CTS

CTS Corp. – Bare Printed Circuit Board Manufacturing
CTS Corporation is a leading designer and manufacturer of products that Sense, Connect, and Move. The company manufactures sensors, actuators, and electronic components in North America, Europe, and Asia, and provides engineered products to customers in the aerospace/defense, industrial, medical, telecommunications/IT, and transportation markets.
Analysis Results
Intrinsic Value $72.45
Latest Price $42.78
Relative Value 41% 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 17.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.2%, 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 92.4 85.4
2023 108 92.5
2024 127 100
2025 149 109
2026 174 118
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2890 million. This corresponds to a present value of 1800 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 505 million. Adding in the terminal value gives a total present value of 2310 million.

There are presently 31.9 million outstanding shares, so the intrinsic value per share is 72.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 289,089,000
Current Cash 141,465,000
Current Liabilities 114,066,000
Current Debt 0
Non-Cash Working Capital (NCWC) 33,558,000
Change in NCWC -2,968,000
EBIT 78,166,000
Tax Provision -19,014,000
Depreciation and Amortization 26,930,000
Capital Expenditure -15,641,000
Unlevered Free Cash Flow 86,487,000
Current Assets 233,231,000
Current Cash 91,773,000
Current Liabilities 104,932,000
Current Debt 0
Non-Cash Working Capital (NCWC) 36,526,000
Change in NCWC -3,763,000
EBIT 46,959,000
Tax Provision 10,793,000
Depreciation and Amortization 26,670,000
Capital Expenditure -14,858,000
Unlevered Free Cash Flow 43,863,768
Current Assets 237,478,000
Current Cash 100,241,000
Current Liabilities 96,948,000
Current Debt 0
Non-Cash Working Capital (NCWC) 40,289,000
Change in NCWC 5,856,000
EBIT 61,200,000
Tax Provision 14,120,000
Depreciation and Amortization 24,619,000
Capital Expenditure -21,733,000
Unlevered Free Cash Flow 52,750,578
Current Assets 239,359,000
Current Cash 100,933,000
Current Liabilities 103,993,000
Current Debt 0
Non-Cash Working Capital (NCWC) 34,433,000
Change in NCWC 16,808,000
EBIT 66,100,000
Tax Provision 11,571,000
Depreciation and Amortization 22,514,000
Capital Expenditure -28,488,000
Unlevered Free Cash Flow 63,770,426
Current Assets 233,609,000
Current Cash 113,572,000
Current Liabilities 102,412,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,625,000
Change in NCWC 12,846,000
EBIT 43,342,000
Tax Provision 25,805,000
Depreciation and Amortization 20,674,000
Capital Expenditure -18,094,000
Unlevered Free Cash Flow 30,982,734
Current Assets 215,707,000
Current Cash 113,805,000
Current Liabilities 98,129,000
Current Debt 1,006,000
Non-Cash Working Capital (NCWC) 4,779,000
Change in NCWC 11,079,000
EBIT 54,764,000
Tax Provision 22,865,000
Depreciation and Amortization 18,992,000
Capital Expenditure -20,500,000
Unlevered Free Cash Flow 42,460,969
Current Assets 251,979,000
Current Cash 156,928,000
Current Liabilities 101,351,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,300,000
Change in NCWC -32,211,000
EBIT 47,218,000
Tax Provision 5,307,000
Depreciation and Amortization 16,254,000
Capital Expenditure -9,723,000
Unlevered Free Cash Flow 1,100,358
Current Assets 240,401,000
Current Cash 134,508,000
Current Liabilities 79,982,000
Current Debt 0
Non-Cash Working Capital (NCWC) 25,911,000
Change in NCWC 9,130,000
EBIT 48,264,000
Tax Provision 12,826,000
Depreciation and Amortization 16,971,000
Capital Expenditure -12,949,000
Unlevered Free Cash Flow 45,683,712
Current Assets 236,269,000
Current Cash 124,368,000
Current Liabilities 95,120,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,781,000
Change in NCWC -68,180,000
EBIT 28,142,000
Tax Provision 16,066,000
Depreciation and Amortization 21,169,000
Capital Expenditure -13,982,000
Unlevered Free Cash Flow -57,881,691
Current Assets 309,558,000
Current Cash 109,571,000
Current Liabilities 115,026,000
Current Debt 0
Non-Cash Working Capital (NCWC) 84,961,000
Change in NCWC 2,224,000
EBIT 20,971,000
Tax Provision 6,609,000
Depreciation and Amortization 19,615,000
Capital Expenditure -16,323,000
Unlevered Free Cash Flow 21,342,714

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