DCF Tool

EAF

GrafTech International Ltd. – Carbon and Graphite Product Manufacturing
GrafTech International Ltd. is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals.
Analysis Results
Intrinsic Value $58.09
Latest Price $4.31
Relative Value 93% 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 9.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.8%, 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 (billion) Present value (billion)
2022 0.68 0.632
2023 0.747 0.646
2024 0.82 0.659
2025 0.9 0.674
2026 0.989 0.688
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18.3 billion. This corresponds to a present value of 11.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.3 billion. Adding in the terminal value gives a total present value of 15.1 billion.

There are presently 260.0 million outstanding shares, so the intrinsic value per share is 58.09.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 627,857,000
Current Cash 57,514,000
Current Liabilities 234,569,000
Current Debt 127,000
Non-Cash Working Capital (NCWC) 335,901,000
Change in NCWC 50,138,000
EBIT 508,074,000
Tax Provision 68,076,000
Depreciation and Amortization 65,716,000
Capital Expenditure -58,257,000
Unlevered Free Cash Flow 489,888,373
Current Assets 629,167,000
Current Cash 145,442,000
Current Liabilities 198,093,000
Current Debt 131,000
Non-Cash Working Capital (NCWC) 285,763,000
Change in NCWC -95,817,000
EBIT 588,609,000
Tax Provision 75,671,000
Depreciation and Amortization 62,963,000
Capital Expenditure -36,075,000
Unlevered Free Cash Flow 432,353,133
Current Assets 682,580,000
Current Cash 80,935,000
Current Liabilities 220,206,000
Current Debt 141,000
Non-Cash Working Capital (NCWC) 381,580,000
Change in NCWC 14,213,000
EBIT 974,045,000
Tax Provision 98,225,000
Depreciation and Amortization 61,819,000
Capital Expenditure -64,103,000
Unlevered Free Cash Flow 872,456,552
Current Assets 638,051,000
Current Cash 49,880,000
Current Liabilities 327,127,000
Current Debt 106,323,000
Non-Cash Working Capital (NCWC) 367,367,000
Change in NCWC 2,183,675,000
EBIT 1,126,051,000
Tax Provision 48,920,000
Depreciation and Amortization 66,413,000
Capital Expenditure -68,221,000
Unlevered Free Cash Flow 3,246,901,244
Current Assets 354,542,000
Current Cash 13,365,000
Current Liabilities 2,173,959,000
Current Debt 16,474,000
Non-Cash Working Capital (NCWC) -1,816,308,000
Change in NCWC -2,032,076,000
EBIT 37,002,000
Tax Provision -10,781,000
Depreciation and Amortization 66,443,000
Capital Expenditure -34,664,000
Unlevered Free Cash Flow -1,963,295,000
Current Assets 330,933,000
Current Cash 11,610,000
Current Liabilities 112,407,000
Current Debt 8,852,000
Non-Cash Working Capital (NCWC) 215,768,000
Change in NCWC -112,839,000
EBIT -70,236,000
Tax Provision -7,552,000
Depreciation and Amortization 82,891,000
Capital Expenditure -27,858,000
Unlevered Free Cash Flow -128,042,000
Current Assets 426,878,000
Current Cash 6,927,000
Current Liabilities 96,116,000
Current Debt 4,772,000
Non-Cash Working Capital (NCWC) 328,607,000
Change in NCWC -135,041,000
EBIT -64,223,000
Tax Provision 10,966,000
Depreciation and Amortization 74,079,000
Capital Expenditure -50,743,000
Unlevered Free Cash Flow -175,928,000
Current Assets 644,995,000
Current Cash 17,550,000
Current Liabilities 351,901,000
Current Debt 188,104,000
Non-Cash Working Capital (NCWC) 463,648,000
Change in NCWC -94,863,000
EBIT -46,775,000
Tax Provision -9,416,000
Depreciation and Amortization 119,708,000
Capital Expenditure -84,981,000
Unlevered Free Cash Flow -106,911,000
Current Assets 775,658,000
Current Cash 11,888,000
Current Liabilities 215,875,000
Current Debt 10,616,000
Non-Cash Working Capital (NCWC) 558,511,000
Change in NCWC -37,177,000
EBIT 17,586,000
Tax Provision -12,843,000
Depreciation and Amortization 123,397,000
Capital Expenditure -86,344,000
Unlevered Free Cash Flow 17,462,000
Current Assets 823,001,000
Current Cash 17,317,000
Current Liabilities 245,384,000
Current Debt 35,388,000
Non-Cash Working Capital (NCWC) 595,688,000
Change in NCWC 109,322,000
EBIT 156,468,000
Tax Provision 16,847,000
Depreciation and Amortization 81,660,000
Capital Expenditure -127,728,000
Unlevered Free Cash Flow 200,121,470

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