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Darling Ingredients Inc – Rendering and Meat Byproduct Processing
Darling Ingredients Inc. is one of the world's leading producers of organic ingredients, producing a wide array of sustainable protein and fat products while being one of the largest producers of renewable clean energy. With operations on five continents, Darling collects waste streams from the agri-food industry, repurposing into specialty ingredients, such as hydrolyzed collagen, edible and feed-grade fats, animal proteins and meals, plasma, pet food ingredients, fuel feedstocks, and green bioenergy. The Company sells its products around the globe and works to strengthen its promise for a better tomorrow, creating product applications for health, nutrients and bioenergy while optimizing its services to the food chain. Darling is a 50% joint partner in Diamond Green Diesel (DGD), North America's largest renewable diesel manufacturer, currently producing approximately 290 million gallons of renewable diesel annually which products reduce Green House Gas (GHG) emissions by up to 85% compared to fossil fuels.
Analysis Results
Intrinsic Value $329.66
Latest Price $66.15
Relative Value 80% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 44.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 44.4%, 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 (billion) Present value (billion)
2022 1.09 1.0
2023 1.57 1.33
2024 2.27 1.77
2025 3.28 2.34
2026 4.73 3.11
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 71.6 billion. This corresponds to a present value of 43.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.55 billion. Adding in the terminal value gives a total present value of 52.9 billion.

There are presently 160.0 million outstanding shares, so the intrinsic value per share is 329.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,089,014,000
Current Cash 68,906,000
Current Liabilities 752,684,000
Current Debt 24,407,000
Non-Cash Working Capital (NCWC) 291,831,000
Change in NCWC 34,221,000
EBIT 891,439,000
Tax Provision 164,106,000
Depreciation and Amortization 316,387,000
Capital Expenditure -274,126,000
Unlevered Free Cash Flow 789,821,169
Current Assets 986,994,000
Current Cash 81,617,000
Current Liabilities 675,305,000
Current Debt 27,538,000
Non-Cash Working Capital (NCWC) 257,610,000
Change in NCWC 10,600,000
EBIT 472,722,000
Tax Provision 53,289,000
Depreciation and Amortization 350,178,000
Capital Expenditure -280,115,000
Unlevered Free Cash Flow 482,147,643
Current Assets 917,288,000
Current Cash 72,935,000
Current Liabilities 688,339,000
Current Debt 90,996,000
Non-Cash Working Capital (NCWC) 247,010,000
Change in NCWC -10,664,000
EBIT 455,667,000
Tax Provision 59,467,000
Depreciation and Amortization 325,510,000
Capital Expenditure -359,498,000
Unlevered Free Cash Flow 339,788,060
Current Assets 897,942,000
Current Cash 107,262,000
Current Liabilities 540,498,000
Current Debt 7,492,000
Non-Cash Working Capital (NCWC) 257,674,000
Change in NCWC -48,657,000
EBIT 269,416,000
Tax Provision 12,031,000
Depreciation and Amortization 321,192,000
Capital Expenditure -321,896,000
Unlevered Free Cash Flow 192,580,162
Current Assets 956,445,000
Current Cash 106,774,000
Current Liabilities 559,483,000
Current Debt 16,143,000
Non-Cash Working Capital (NCWC) 306,331,000
Change in NCWC -43,803,000
EBIT 165,317,000
Tax Provision -69,154,000
Depreciation and Amortization 302,100,000
Capital Expenditure -274,168,000
Unlevered Free Cash Flow 149,446,000
Current Assets 893,302,000
Current Cash 114,564,000
Current Liabilities 451,851,000
Current Debt 23,247,000
Non-Cash Working Capital (NCWC) 350,134,000
Change in NCWC -28,268,000
EBIT 222,847,000
Tax Provision 15,315,000
Depreciation and Amortization 289,908,000
Capital Expenditure -243,523,000
Unlevered Free Cash Flow 213,112,444
Current Assets 931,788,000
Current Cash 156,884,000
Current Liabilities 443,746,000
Current Debt 47,244,000
Non-Cash Working Capital (NCWC) 378,402,000
Change in NCWC -136,785,000
EBIT 224,359,000
Tax Provision 13,501,000
Depreciation and Amortization 269,904,000
Capital Expenditure -229,848,000
Unlevered Free Cash Flow 96,965,180
Current Assets 1,053,613,000
Current Cash 108,784,000
Current Liabilities 484,043,000
Current Debt 54,401,000
Non-Cash Working Capital (NCWC) 515,187,000
Change in NCWC 415,458,000
EBIT 254,784,000
Tax Provision 13,141,000
Depreciation and Amortization 269,517,000
Capital Expenditure -228,918,000
Unlevered Free Cash Flow 669,735,606
Current Assets 1,127,502,000
Current Cash 870,857,000
Current Liabilities 176,804,000
Current Debt 19,888,000
Non-Cash Working Capital (NCWC) 99,729,000
Change in NCWC 44,318,000
EBIT 200,497,000
Tax Provision 54,711,000
Depreciation and Amortization 98,787,000
Capital Expenditure -118,307,000
Unlevered Free Cash Flow 158,276,882
Current Assets 290,262,000
Current Cash 103,249,000
Current Liabilities 131,684,000
Current Debt 82,000
Non-Cash Working Capital (NCWC) 55,411,000
Change in NCWC 1,914,000
EBIT 229,079,000
Tax Provision 76,015,000
Depreciation and Amortization 85,371,000
Capital Expenditure -115,413,000
Unlevered Free Cash Flow 116,740,635

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