DCF Tool

CWCO

Consolidated Water Co. Ltd. – Water Supply and Irrigation Systems
Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company operates water production facilities in the Cayman Islands, The Bahamas and the British Virgin Islands and operates water treatment facilities in the United States. The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment.
Analysis Results
Intrinsic Value $39.16
Latest Price $14.89
Relative Value 62% 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 7.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.9%, 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 16.2 15.6
2023 17.5 16.1
2024 18.9 16.7
2025 20.4 17.3
2026 22.0 17.9
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 661 million. This corresponds to a present value of 515 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 83.6 million. Adding in the terminal value gives a total present value of 599 million.

There are presently 15.3 million outstanding shares, so the intrinsic value per share is 39.16.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 76,934,722
Current Cash 42,858,059
Current Liabilities 7,686,657
Current Debt 62,489
Non-Cash Working Capital (NCWC) 26,452,495
Change in NCWC 4,211,344
EBIT 6,053,091
Tax Provision -447,982
Depreciation and Amortization 6,921,233
Capital Expenditure -1,490,012
Unlevered Free Cash Flow 15,695,656
Current Assets 72,932,206
Current Cash 43,794,150
Current Liabilities 6,939,116
Current Debt 42,211
Non-Cash Working Capital (NCWC) 22,241,151
Change in NCWC -142,931
EBIT 8,814,251
Tax Provision 86,724
Depreciation and Amortization 7,406,509
Capital Expenditure -1,728,393
Unlevered Free Cash Flow 14,268,379
Current Assets 73,442,612
Current Cash 42,902,669
Current Liabilities 8,173,614
Current Debt 17,753
Non-Cash Working Capital (NCWC) 22,384,082
Change in NCWC -742,679
EBIT 9,042,355
Tax Provision 66,621
Depreciation and Amortization 7,207,647
Capital Expenditure -3,525,122
Unlevered Free Cash Flow 11,922,975
Current Assets 62,364,232
Current Cash 31,337,477
Current Liabilities 7,899,994
Current Debt 0
Non-Cash Working Capital (NCWC) 23,126,761
Change in NCWC 10,563,648
EBIT 10,229,223
Tax Provision -157,291
Depreciation and Amortization 7,034,234
Capital Expenditure -16,202,520
Unlevered Free Cash Flow 11,624,585
Current Assets 66,691,397
Current Cash 47,182,966
Current Liabilities 7,631,318
Current Debt 686,000
Non-Cash Working Capital (NCWC) 12,563,113
Change in NCWC -2,869,475
EBIT 7,495,898
Tax Provision -888,977
Depreciation and Amortization 7,472,341
Capital Expenditure -4,576,717
Unlevered Free Cash Flow 7,522,047
Current Assets 60,875,792
Current Cash 39,254,116
Current Liabilities 6,679,088
Current Debt 490,000
Non-Cash Working Capital (NCWC) 15,432,588
Change in NCWC 6,628,896
EBIT 5,739,661
Tax Provision -536,057
Depreciation and Amortization 7,421,268
Capital Expenditure -3,462,150
Unlevered Free Cash Flow 16,327,675
Current Assets 65,430,730
Current Cash 50,430,272
Current Liabilities 13,196,766
Current Debt 7,000,000
Non-Cash Working Capital (NCWC) 8,803,692
Change in NCWC -2,790,361
EBIT 8,867,732
Tax Provision 0
Depreciation and Amortization 5,836,933
Capital Expenditure -3,113,565
Unlevered Free Cash Flow 8,800,739
Current Assets 59,460,082
Current Cash 40,713,689
Current Liabilities 16,152,340
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 11,594,053
Change in NCWC 4,597,051
EBIT 6,875,814
Tax Provision 0
Depreciation and Amortization 5,524,359
Capital Expenditure -4,716,769
Unlevered Free Cash Flow 12,280,455
Current Assets 67,582,915
Current Cash 42,213,991
Current Liabilities 23,577,089
Current Debt 5,205,167
Non-Cash Working Capital (NCWC) 6,997,002
Change in NCWC -4,772,359
EBIT 8,998,928
Tax Provision 0
Depreciation and Amortization 5,472,116
Capital Expenditure -6,440,955
Unlevered Free Cash Flow 3,257,730
Current Assets 61,258,777
Current Cash 42,462,993
Current Liabilities 8,673,916
Current Debt 1,647,493
Non-Cash Working Capital (NCWC) 11,769,361
Change in NCWC -3,669,364
EBIT 9,914,398
Tax Provision 0
Depreciation and Amortization 7,728,568
Capital Expenditure -4,574,173
Unlevered Free Cash Flow 9,399,429

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