DCF Tool

DORM

Dorman Products Inc – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
Dorman gives repair professionals and vehicle owners greater freedom to fix cars and trucks by focusing on solutions first. For more than 100 years, Dorman has been one of the automotive aftermarket’s pioneering problem solvers, releasing tens of thousands of replacement products engineered to save time and money, and increase convenience and reliability. Founded and headquartered in the United States, Dorman is a global organization offering more than 80,000 parts, covering both light duty and heavy-duty vehicles, from chassis to body, from underhood to undercar, and from hardware to complex electronics.
Analysis Results
Intrinsic Value $349.29
Latest Price $85.87
Relative Value 75% 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 16.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.4%, 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 (million) Present value (million)
2022 313 294
2023 364 322
2024 424 352
2025 494 386
2026 575 422
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 13300 million. This corresponds to a present value of 9200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1780 million. Adding in the terminal value gives a total present value of 11000 million.

There are presently 31.4 million outstanding shares, so the intrinsic value per share is 349.29.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,076,582,000
Current Cash 58,782,000
Current Liabilities 665,048,000
Current Debt 239,360,000
Non-Cash Working Capital (NCWC) 592,112,000
Change in NCWC 147,402,000
EBIT 171,551,000
Tax Provision 38,234,000
Depreciation and Amortization 35,193,000
Capital Expenditure -19,840,000
Unlevered Free Cash Flow 295,669,989
Current Assets 922,931,000
Current Cash 155,576,000
Current Liabilities 322,645,000
Current Debt 0
Non-Cash Working Capital (NCWC) 444,710,000
Change in NCWC -21,025,000
EBIT 133,373,000
Tax Provision 28,866,000
Depreciation and Amortization 32,307,000
Capital Expenditure -15,450,000
Unlevered Free Cash Flow 100,841,522
Current Assets 754,590,000
Current Cash 68,353,000
Current Liabilities 220,502,000
Current Debt 0
Non-Cash Working Capital (NCWC) 465,735,000
Change in NCWC 21,055,000
EBIT 105,828,000
Tax Provision 22,045,000
Depreciation and Amortization 25,915,000
Capital Expenditure -29,560,000
Unlevered Free Cash Flow 101,188,624
Current Assets 629,728,000
Current Cash 43,458,000
Current Liabilities 141,590,000
Current Debt 0
Non-Cash Working Capital (NCWC) 444,680,000
Change in NCWC 94,303,000
EBIT 171,143,000
Tax Provision 37,533,000
Depreciation and Amortization 28,391,000
Capital Expenditure -26,106,000
Unlevered Free Cash Flow 230,196,245
Current Assets 532,849,000
Current Cash 71,691,000
Current Liabilities 110,781,000
Current Debt 0
Non-Cash Working Capital (NCWC) 350,377,000
Change in NCWC 51,732,000
EBIT 176,240,000
Tax Provision 69,989,000
Depreciation and Amortization 22,224,000
Capital Expenditure -24,450,000
Unlevered Free Cash Flow 155,894,926
Current Assets 551,614,000
Current Cash 149,121,000
Current Liabilities 103,848,000
Current Debt 0
Non-Cash Working Capital (NCWC) 298,645,000
Change in NCWC -2,759,000
EBIT 168,601,000
Tax Provision 62,311,000
Depreciation and Amortization 18,907,000
Capital Expenditure -20,059,000
Unlevered Free Cash Flow 102,289,804
Current Assets 478,633,000
Current Cash 78,659,000
Current Liabilities 98,570,000
Current Debt 0
Non-Cash Working Capital (NCWC) 301,404,000
Change in NCWC -15,571,000
EBIT 146,157,000
Tax Provision 53,612,000
Depreciation and Amortization 16,186,000
Capital Expenditure -21,688,000
Unlevered Free Cash Flow 71,392,651
Current Assets 455,464,000
Current Cash 47,656,000
Current Liabilities 90,833,000
Current Debt 0
Non-Cash Working Capital (NCWC) 316,975,000
Change in NCWC 36,866,000
EBIT 140,734,000
Tax Provision 50,543,000
Depreciation and Amortization 12,658,000
Capital Expenditure -29,862,000
Unlevered Free Cash Flow 109,779,629
Current Assets 432,440,000
Current Cash 60,593,000
Current Liabilities 91,738,000
Current Debt 0
Non-Cash Working Capital (NCWC) 280,109,000
Change in NCWC 35,453,000
EBIT 127,939,000
Tax Provision 45,830,000
Depreciation and Amortization 10,159,000
Capital Expenditure -24,666,000
Unlevered Free Cash Flow 102,987,196
Current Assets 329,675,000
Current Cash 27,708,000
Current Liabilities 57,311,000
Current Debt 0
Non-Cash Working Capital (NCWC) 244,656,000
Change in NCWC 29,252,000
EBIT 104,231,000
Tax Provision 37,703,000
Depreciation and Amortization 8,225,000
Capital Expenditure -18,078,000
Unlevered Free Cash Flow 85,882,455

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