DCF Tool

DOV

Dover Corp. – Oil and Gas Field Machinery and Equipment Manufacturing
Headquartered in Downers Grove, Illinois, Dover Corporation is a diversified global manufacturer and solutions provider with annual revenue of approximately $7 billion. The company delivers innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale, operational agility, world-class engineering capability and customer intimacy to lead the markets the company serves. Recognized for its entrepreneurial approach for over 60 years, its team of over 23,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible.
Analysis Results
Intrinsic Value $183.64
Latest Price $137.03
Relative Value 25% undervalued
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Cash Flow (Billions)
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 7.6%.

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 7.6%, 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)
2023 1.41 1.31
2024 1.52 1.3
2025 1.64 1.29
2026 1.76 1.28
2027 1.89 1.27
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 30.9 billion. This corresponds to a present value of 19.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.45 billion. Adding in the terminal value gives a total present value of 25.7 billion.

There are presently 140.0 million outstanding shares, so the intrinsic value per share is 183.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,423,465,000
Current Cash 380,868,000
Current Liabilities 2,773,274,000
Current Debt 735,772,000
Non-Cash Working Capital (NCWC) 1,005,095,000
Change in NCWC 473,529,000
EBIT 1,379,330,000
Tax Provision 222,129,000
Depreciation and Amortization 307,538,000
Capital Expenditure -220,962,000
Unlevered Free Cash Flow 1,701,463,734
Current Assets 3,061,709,000
Current Cash 385,504,000
Current Liabilities 2,250,341,000
Current Debt 105,702,000
Non-Cash Working Capital (NCWC) 531,566,000
Change in NCWC 164,252,000
EBIT 1,281,508,000
Tax Provision 277,008,000
Depreciation and Amortization 290,123,000
Capital Expenditure -171,465,000
Unlevered Free Cash Flow 1,311,004,679
Current Assets 2,619,187,000
Current Cash 513,075,000
Current Liabilities 1,738,798,000
Current Debt 0
Non-Cash Working Capital (NCWC) 367,314,000
Change in NCWC -118,672,000
EBIT 932,987,000
Tax Provision 158,283,000
Depreciation and Amortization 279,051,000
Capital Expenditure -165,692,000
Unlevered Free Cash Flow 752,231,423
Current Assets 2,548,430,000
Current Cash 397,253,000
Current Liabilities 1,749,891,000
Current Debt 84,700,000
Non-Cash Working Capital (NCWC) 485,986,000
Change in NCWC -14,444,000
EBIT 1,021,840,000
Tax Provision 165,091,000
Depreciation and Amortization 272,287,000
Capital Expenditure -186,804,000
Unlevered Free Cash Flow 892,766,560
Current Assets 2,503,754,000
Current Cash 396,221,000
Current Liabilities 1,827,421,000
Current Debt 220,318,000
Non-Cash Working Capital (NCWC) 500,430,000
Change in NCWC -235,635,000
EBIT 843,112,000
Tax Provision 134,233,000
Depreciation and Amortization 282,580,000
Capital Expenditure -170,994,000
Unlevered Free Cash Flow 563,043,030
Current Assets 3,207,120,000
Current Cash 753,964,000
Current Liabilities 2,298,193,000
Current Debt 581,102,000
Non-Cash Working Capital (NCWC) 736,065,000
Change in NCWC 21,788,000
EBIT 914,445,000
Tax Provision 162,178,000
Depreciation and Amortization 394,240,000
Capital Expenditure -196,735,000
Unlevered Free Cash Flow 981,451,788
Current Assets 2,589,191,000
Current Cash 349,146,000
Current Liabilities 1,940,318,000
Current Debt 414,550,000
Non-Cash Working Capital (NCWC) 714,277,000
Change in NCWC -128,257,000
EBIT 714,446,000
Tax Provision 180,440,000
Depreciation and Amortization 360,739,000
Capital Expenditure -165,205,000
Unlevered Free Cash Flow 594,709,142
Current Assets 2,420,779,000
Current Cash 362,185,000
Current Liabilities 1,367,182,000
Current Debt 151,122,000
Non-Cash Working Capital (NCWC) 842,534,000
Change in NCWC -111,309,000
EBIT 920,762,000
Tax Provision 204,729,000
Depreciation and Amortization 327,089,000
Capital Expenditure -154,251,000
Unlevered Free Cash Flow 746,837,179
Current Assets 2,896,822,000
Current Cash 681,581,000
Current Liabilities 2,039,354,000
Current Debt 777,956,000
Non-Cash Working Capital (NCWC) 953,843,000
Change in NCWC -96,135,000
EBIT 1,215,484,000
Tax Provision 316,067,000
Depreciation and Amortization 307,188,000
Capital Expenditure -166,033,000
Unlevered Free Cash Flow 909,405,550
Current Assets 3,240,162,000
Current Cash 803,882,000
Current Liabilities 1,615,580,000
Current Debt 229,278,000
Non-Cash Working Capital (NCWC) 1,049,978,000
Change in NCWC 198,072,000
EBIT 1,353,932,000
Tax Provision 271,607,000
Depreciation and Amortization 421,616,000
Capital Expenditure -236,833,000
Unlevered Free Cash Flow 1,439,604,324
Current Assets 3,027,844,000
Current Cash 800,076,000
Current Liabilities 1,986,628,000
Current Debt 610,766,000
Non-Cash Working Capital (NCWC) 851,906,000
Change in NCWC -136,510,000
EBIT 1,265,377,000
Tax Provision 304,452,000
Depreciation and Amortization 357,585,000
Capital Expenditure -297,012,000
Unlevered Free Cash Flow 850,782,845

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