DCF Tool

EMR

at emerson, we’re passionate about what we do. by fusing decades of technology and engineering expertise, we continue to solve some of the world’s most complex challenges with integrated, innovative solutions. we recruit the greatest talent and apply the best technologies to benefit our customers worldwide. our goal is to design and produce products, systems and solutions that harness the needs of our customers in unique ways, and deliver unmatched value. with more than 135,000 employees and 235 manufacturing locations, emerson has a wide range of industry knowledge, manufacturing expertise, and technological innovation, around the world. join our next generation of leaders now.
Analysis Results
Intrinsic Value $88.31
Latest Price $112.65
Relative Value 28% overvalued
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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 1.8%.

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 1.8%, 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)
2024 2.96 2.75
2025 3.01 2.6
2026 3.06 2.47
2027 3.12 2.33
2028 3.18 2.21
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 58.8 billion. This corresponds to a present value of 38.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.4 billion. Adding in the terminal value gives a total present value of 50.4 billion.

There are presently 571.0 million outstanding shares, so the intrinsic value per share is 88.31.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,819,000,000
Current Cash 8,051,000,000
Current Liabilities 5,032,000,000
Current Debt 547,000,000
Non-Cash Working Capital (NCWC) 1,283,000,000
Change in NCWC 243,000,000
EBIT 2,582,000,000
Tax Provision 599,000,000
Depreciation and Amortization 1,051,000,000
Capital Expenditure -363,000,000
Unlevered Free Cash Flow 2,945,641,966
Current Assets 8,506,000,000
Current Cash 1,804,000,000
Current Liabilities 7,777,000,000
Current Debt 2,115,000,000
Non-Cash Working Capital (NCWC) 1,040,000,000
Change in NCWC 336,000,000
EBIT 3,583,000,000
Tax Provision 855,000,000
Depreciation and Amortization 1,039,000,000
Capital Expenditure -531,000,000
Unlevered Free Cash Flow 3,677,069,767
Current Assets 8,432,000,000
Current Cash 2,354,000,000
Current Liabilities 6,246,000,000
Current Debt 872,000,000
Non-Cash Working Capital (NCWC) 704,000,000
Change in NCWC -162,000,000
EBIT 3,084,000,000
Tax Provision 585,000,000
Depreciation and Amortization 969,000,000
Capital Expenditure -581,000,000
Unlevered Free Cash Flow 2,690,446,428
Current Assets 8,806,000,000
Current Cash 3,315,000,000
Current Liabilities 5,785,000,000
Current Debt 1,160,000,000
Non-Cash Working Capital (NCWC) 866,000,000
Change in NCWC -247,000,000
EBIT 2,784,000,000
Tax Provision 345,000,000
Depreciation and Amortization 854,000,000
Capital Expenditure -538,000,000
Unlevered Free Cash Flow 2,441,659,528
Current Assets 7,139,000,000
Current Cash 1,494,000,000
Current Liabilities 5,976,000,000
Current Debt 1,444,000,000
Non-Cash Working Capital (NCWC) 1,113,000,000
Change in NCWC 128,000,000
EBIT 3,120,000,000
Tax Provision 531,000,000
Depreciation and Amortization 822,000,000
Capital Expenditure -594,000,000
Unlevered Free Cash Flow 2,896,524,658
Current Assets 6,619,000,000
Current Cash 1,093,000,000
Current Liabilities 6,164,000,000
Current Debt 1,623,000,000
Non-Cash Working Capital (NCWC) 985,000,000
Change in NCWC -22,000,000
EBIT 2,991,000,000
Tax Provision 443,000,000
Depreciation and Amortization 758,000,000
Capital Expenditure -617,000,000
Unlevered Free Cash Flow 2,613,182,227
Current Assets 8,252,000,000
Current Cash 3,062,000,000
Current Liabilities 5,045,000,000
Current Debt 862,000,000
Non-Cash Working Capital (NCWC) 1,007,000,000
Change in NCWC -347,000,000
EBIT 2,650,000,000
Tax Provision 660,000,000
Depreciation and Amortization 636,000,000
Capital Expenditure -476,000,000
Unlevered Free Cash Flow 1,713,963,597
Current Assets 9,960,000,000
Current Cash 3,182,000,000
Current Liabilities 8,008,000,000
Current Debt 2,584,000,000
Non-Cash Working Capital (NCWC) 1,354,000,000
Change in NCWC -394,000,000
EBIT 2,714,000,000
Tax Provision 697,000,000
Depreciation and Amortization 568,000,000
Capital Expenditure -447,000,000
Unlevered Free Cash Flow 1,624,221,934
Current Assets 10,049,000,000
Current Cash 3,054,000,000
Current Liabilities 7,800,000,000
Current Debt 2,553,000,000
Non-Cash Working Capital (NCWC) 1,748,000,000
Change in NCWC 19,000,000
EBIT 3,650,000,000
Tax Provision 1,428,000,000
Depreciation and Amortization 815,000,000
Capital Expenditure -685,000,000
Unlevered Free Cash Flow 2,546,368,421
Current Assets 10,867,000,000
Current Cash 3,149,000,000
Current Liabilities 8,454,000,000
Current Debt 2,465,000,000
Non-Cash Working Capital (NCWC) 1,729,000,000
Change in NCWC 43,000,000
EBIT 4,218,000,000
Tax Provision 1,164,000,000
Depreciation and Amortization 831,000,000
Capital Expenditure -767,000,000
Unlevered Free Cash Flow 2,858,526,881
Current Assets 10,999,000,000
Current Cash 3,275,000,000
Current Liabilities 7,625,000,000
Current Debt 1,587,000,000
Non-Cash Working Capital (NCWC) 1,686,000,000
Change in NCWC -446,000,000
EBIT 4,084,000,000
Tax Provision 1,130,000,000
Depreciation and Amortization 819,000,000
Capital Expenditure -678,000,000
Unlevered Free Cash Flow 2,335,032,540
Current Assets 10,126,000,000
Current Cash 2,367,000,000
Current Liabilities 7,133,000,000
Current Debt 1,506,000,000
Non-Cash Working Capital (NCWC) 2,132,000,000
Change in NCWC 427,000,000
EBIT 4,091,000,000
Tax Provision 1,091,000,000
Depreciation and Amortization 823,000,000
Capital Expenditure -665,000,000
Unlevered Free Cash Flow 3,243,165,008

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