DCF Tool

DRQ

Dril-Quip, Inc. – Oil and Gas Field Machinery and Equipment Manufacturing
Dril-Quip is a leading manufacturer of highly engineered drilling and production equipment for use onshore and offshore, which is particularly well suited for use in deep water, harsh environments, and severe service applications.
Analysis Results
Intrinsic Value $19.63
Latest Price $23.36
Relative Value 19% overvalued
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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 -16.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -16.8%, 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 43.5 42.3
2023 36.2 34.3
2024 30.2 27.7
2025 25.1 22.4
2026 20.9 18.2
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 627 million. This corresponds to a present value of 530 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 145 million. Adding in the terminal value gives a total present value of 675 million.

There are presently 34.4 million outstanding shares, so the intrinsic value per share is 19.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 745,549,000
Current Cash 355,451,000
Current Liabilities 93,663,000
Current Debt 0
Non-Cash Working Capital (NCWC) 296,435,000
Change in NCWC -135,291,000
EBIT -49,551,000
Tax Provision 2,946,000
Depreciation and Amortization 30,381,000
Capital Expenditure -9,990,000
Unlevered Free Cash Flow -164,451,000
Current Assets 863,193,000
Current Cash 345,955,000
Current Liabilities 85,512,000
Current Debt 0
Non-Cash Working Capital (NCWC) 431,726,000
Change in NCWC 47,123,000
EBIT -18,702,000
Tax Provision -31,281,000
Depreciation and Amortization 32,389,000
Capital Expenditure -11,943,000
Unlevered Free Cash Flow 48,867,000
Current Assets 880,489,000
Current Cash 398,946,000
Current Liabilities 96,940,000
Current Debt 0
Non-Cash Working Capital (NCWC) 384,603,000
Change in NCWC 31,980,000
EBIT 5,688,000
Tax Provision 8,709,000
Depreciation and Amortization 34,020,000
Capital Expenditure -11,501,000
Unlevered Free Cash Flow 55,437,091
Current Assets 852,981,000
Current Cash 418,100,000
Current Liabilities 82,258,000
Current Debt 0
Non-Cash Working Capital (NCWC) 352,623,000
Change in NCWC -62,835,000
EBIT -30,334,000
Tax Provision -19,294,000
Depreciation and Amortization 35,312,000
Capital Expenditure -32,061,000
Unlevered Free Cash Flow -89,918,000
Current Assets 1,008,549,000
Current Cash 493,180,000
Current Liabilities 99,911,000
Current Debt 0
Non-Cash Working Capital (NCWC) 415,458,000
Change in NCWC -116,276,000
EBIT -8,168,000
Tax Provision 34,995,000
Depreciation and Amortization 40,974,000
Capital Expenditure -27,622,000
Unlevered Free Cash Flow -111,092,000
Current Assets 1,056,711,000
Current Cash 423,497,000
Current Liabilities 101,480,000
Current Debt 0
Non-Cash Working Capital (NCWC) 531,734,000
Change in NCWC -110,413,000
EBIT 112,859,000
Tax Provision 22,647,000
Depreciation and Amortization 31,857,000
Capital Expenditure -25,763,000
Unlevered Free Cash Flow -13,518,875
Current Assets 1,124,298,000
Current Cash 381,336,000
Current Liabilities 100,815,000
Current Debt 0
Non-Cash Working Capital (NCWC) 642,147,000
Change in NCWC 12,354,000
EBIT 248,835,000
Tax Provision 57,763,000
Depreciation and Amortization 30,477,000
Capital Expenditure -27,079,000
Unlevered Free Cash Flow 207,040,462
Current Assets 1,127,140,000
Current Cash 298,705,000
Current Liabilities 198,642,000
Current Debt 0
Non-Cash Working Capital (NCWC) 629,793,000
Change in NCWC 78,126,000
EBIT 278,748,000
Tax Provision 70,668,000
Depreciation and Amortization 31,155,000
Capital Expenditure -42,549,000
Unlevered Free Cash Flow 274,971,861
Current Assets 1,078,813,000
Current Cash 384,356,000
Current Liabilities 142,790,000
Current Debt 0
Non-Cash Working Capital (NCWC) 551,667,000
Change in NCWC 39,559,000
EBIT 223,545,000
Tax Provision 54,270,000
Depreciation and Amortization 29,340,000
Capital Expenditure -42,633,000
Unlevered Free Cash Flow 195,674,678
Current Assets 924,388,000
Current Cash 257,191,000
Current Liabilities 155,089,000
Current Debt 0
Non-Cash Working Capital (NCWC) 512,108,000
Change in NCWC 162,325,000
EBIT 161,692,000
Tax Provision 42,913,000
Depreciation and Amortization 26,224,000
Capital Expenditure -50,773,000
Unlevered Free Cash Flow 256,668,819

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