DCF Tool


Donaldson Co. Inc. – Iron and Steel Forging
donaldson is one of the nation’s largest and consistently growing filtration manufacturers. we have a rich history beginning in 1915 when our founder, frank a. donaldson, made the first ever successful air cleaner for internal combustion engines. the company has emphasized the role of invention and innovation ever since. we are technology-driven. of our over 13,000 employees, 1,000 of them are scientists and engineers. we strive to solve complex filtration challenges with our value-added innovations. today, those innovative filtration systems are on everything from heavy-duty trucks on the interstate to computer disk drives that store valuable information. donaldson is a member of the s&p midcap 400 index and donaldson shares are traded on the new york stock exchange under the symbol dci.
Analysis Results
Intrinsic Value $66.95
Latest Price $61.41
Relative Value 8% undervalued
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Cash Flow (Millions)
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 1.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.7%, 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)
2024 271 261
2025 276 254
2026 280 249
2027 285 243
2028 290 237
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 8700 million. This corresponds to a present value of 6840 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1240 million. Adding in the terminal value gives a total present value of 8080 million.

There are presently 121.0 million outstanding shares, so the intrinsic value per share is 66.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,286,000,000
Current Cash 187,100,000
Current Liabilities 756,400,000
Current Debt 159,100,000
Non-Cash Working Capital (NCWC) 501,600,000
Change in NCWC -85,700,000
EBIT 480,200,000
Tax Provision 109,900,000
Depreciation and Amortization 92,300,000
Capital Expenditure -118,500,000
Unlevered Free Cash Flow 255,703,499
Current Assets 1,406,500,000
Current Cash 193,300,000
Current Liabilities 629,600,000
Current Debt 3,700,000
Non-Cash Working Capital (NCWC) 587,300,000
Change in NCWC 124,200,000
EBIT 443,500,000
Tax Provision 105,600,000
Depreciation and Amortization 93,800,000
Capital Expenditure -85,500,000
Unlevered Free Cash Flow 469,171,532
Current Assets 1,244,000,000
Current Cash 222,800,000
Current Liabilities 606,600,000
Current Debt 48,500,000
Non-Cash Working Capital (NCWC) 463,100,000
Change in NCWC 300,000
EBIT 384,700,000
Tax Provision 94,100,000
Depreciation and Amortization 95,300,000
Capital Expenditure -59,000,000
Unlevered Free Cash Flow 326,286,167
Current Assets 1,096,700,000
Current Cash 236,600,000
Current Liabilities 406,800,000
Current Debt 9,500,000
Non-Cash Working Capital (NCWC) 462,800,000
Change in NCWC -51,400,000
EBIT 340,100,000
Tax Provision 78,200,000
Depreciation and Amortization 87,600,000
Capital Expenditure -124,400,000
Unlevered Free Cash Flow 172,556,861
Current Assets 1,122,600,000
Current Cash 177,800,000
Current Liabilities 482,900,000
Current Debt 52,300,000
Non-Cash Working Capital (NCWC) 514,200,000
Change in NCWC 19,100,000
EBIT 388,200,000
Tax Provision 108,000,000
Depreciation and Amortization 81,100,000
Capital Expenditure -150,700,000
Unlevered Free Cash Flow 225,957,995
Current Assets 1,125,700,000
Current Cash 204,700,000
Current Liabilities 469,400,000
Current Debt 43,500,000
Non-Cash Working Capital (NCWC) 495,100,000
Change in NCWC 62,700,000
EBIT 383,600,000
Tax Provision 183,300,000
Depreciation and Amortization 76,700,000
Capital Expenditure -97,500,000
Unlevered Free Cash Flow 232,117,491
Current Assets 1,151,000,000
Current Cash 308,400,000
Current Liabilities 484,100,000
Current Debt 73,900,000
Non-Cash Working Capital (NCWC) 432,400,000
Change in NCWC -7,000,000
EBIT 333,600,000
Tax Provision 89,200,000
Depreciation and Amortization 75,200,000
Capital Expenditure -65,900,000
Unlevered Free Cash Flow 243,486,583
Current Assets 1,009,700,000
Current Cash 243,200,000
Current Liabilities 543,800,000
Current Debt 216,700,000
Non-Cash Working Capital (NCWC) 439,400,000
Change in NCWC -2,470,000
EBIT 274,200,000
Tax Provision 66,600,000
Depreciation and Amortization 74,900,000
Capital Expenditure -72,900,000
Unlevered Free Cash Flow 202,783,146
Current Assets 1,030,716,000
Current Cash 217,368,000
Current Liabilities 560,647,000
Current Debt 189,169,000
Non-Cash Working Capital (NCWC) 441,870,000
Change in NCWC 62,751,000
EBIT 288,310,000
Tax Provision 80,492,000
Depreciation and Amortization 74,298,000
Capital Expenditure -93,739,000
Unlevered Free Cash Flow 251,209,718
Current Assets 1,225,277,000
Current Cash 423,619,000
Current Liabilities 609,580,000
Current Debt 187,041,000
Non-Cash Working Capital (NCWC) 379,119,000
Change in NCWC 15,926,000
EBIT 362,275,000
Tax Provision 100,479,000
Depreciation and Amortization 67,163,000
Capital Expenditure -97,210,000
Unlevered Free Cash Flow 247,237,096
Current Assets 1,055,662,000
Current Cash 323,888,000
Current Liabilities 476,435,000
Current Debt 107,854,000
Non-Cash Working Capital (NCWC) 363,193,000
Change in NCWC -3,288,000
EBIT 348,022,000
Tax Provision 100,804,000
Depreciation and Amortization 64,290,000
Capital Expenditure -94,895,000
Unlevered Free Cash Flow 213,371,033
Current Assets 1,085,662,000
Current Cash 318,151,000
Current Liabilities 498,523,000
Current Debt 97,493,000
Non-Cash Working Capital (NCWC) 366,481,000
Change in NCWC 8,637,000
EBIT 367,751,000
Tax Provision 106,479,000
Depreciation and Amortization 61,165,000
Capital Expenditure -78,139,000
Unlevered Free Cash Flow 253,804,855

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