DCF Tool

ESE

Esco Technologies, Inc. – Other Communications Equipment Manufacturing
ESCO, headquartered in St. Louis, Missouri: Manufactures highly-engineered filtration and fluid control products for the aviation, navy, space and process markets worldwide, as well as composite-based products and solutions for navy, defense and industrial customers; is the industry leader in RF shielding and EMC test products; and provides diagnostic instruments, software and services for the benefit of industrial power users and the electric utility and renewable energy industries.
Analysis Results
Intrinsic Value $908.94
Latest Price $64.58
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 38.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 38.5%, 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 0.374 0.35
2023 0.518 0.455
2024 0.717 0.591
2025 0.994 0.767
2026 1.38 0.996
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 30.0 billion. This corresponds to a present value of 20.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.16 billion. Adding in the terminal value gives a total present value of 23.5 billion.

There are presently 25.9 million outstanding shares, so the intrinsic value per share is 908.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 932,308,000
Current Cash 112,464,000
Current Liabilities 555,528,000
Current Debt 40,000,000
Non-Cash Working Capital (NCWC) 304,316,000
Change in NCWC 143,907,000
EBIT 164,064,000
Tax Provision 34,350,000
Depreciation and Amortization 84,098,000
Capital Expenditure -70,976,000
Unlevered Free Cash Flow 286,163,481
Current Assets 446,630,000
Current Cash 52,560,000
Current Liabilities 256,029,000
Current Debt 22,368,000
Non-Cash Working Capital (NCWC) 160,409,000
Change in NCWC -42,603,000
EBIT 94,195,000
Tax Provision 14,278,000
Depreciation and Amortization 41,338,000
Capital Expenditure -41,131,000
Unlevered Free Cash Flow 17,958,670
Current Assets 495,194,000
Current Cash 61,808,000
Current Liabilities 251,635,000
Current Debt 21,261,000
Non-Cash Working Capital (NCWC) 203,012,000
Change in NCWC 17,996,000
EBIT 112,852,000
Tax Provision 21,177,000
Depreciation and Amortization 40,050,000
Capital Expenditure -45,569,000
Unlevered Free Cash Flow 101,948,445
Current Assets 396,023,000
Current Cash 30,477,000
Current Liabilities 200,530,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 185,016,000
Change in NCWC 12,709,000
EBIT 100,426,000
Tax Provision -4,113,000
Depreciation and Amortization 37,755,000
Capital Expenditure -30,162,000
Unlevered Free Cash Flow 120,728,000
Current Assets 392,792,000
Current Cash 45,516,000
Current Liabilities 194,969,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 172,307,000
Change in NCWC 40,725,000
EBIT 84,051,000
Tax Provision 26,450,000
Depreciation and Amortization 32,229,000
Capital Expenditure -38,730,000
Unlevered Free Cash Flow 90,538,683
Current Assets 323,483,000
Current Cash 53,825,000
Current Liabilities 158,076,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 131,582,000
Change in NCWC -4,047,000
EBIT 77,529,000
Tax Provision 22,538,000
Depreciation and Amortization 23,568,000
Capital Expenditure -22,508,000
Unlevered Free Cash Flow 49,003,435
Current Assets 298,251,000
Current Cash 39,411,000
Current Liabilities 143,211,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 135,629,000
Change in NCWC 1,907,000
EBIT 63,425,000
Tax Provision 19,785,000
Depreciation and Amortization 18,584,000
Capital Expenditure -19,345,000
Unlevered Free Cash Flow 44,173,678
Current Assets 295,953,000
Current Cash 35,131,000
Current Liabilities 147,100,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 133,722,000
Change in NCWC -36,993,000
EBIT 65,538,000
Tax Provision 19,594,000
Depreciation and Amortization 16,362,000
Capital Expenditure -12,714,000
Unlevered Free Cash Flow 11,549,799
Current Assets 393,921,000
Current Cash 42,850,000
Current Liabilities 230,356,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 170,715,000
Change in NCWC 11,691,000
EBIT 58,228,000
Tax Provision 18,335,000
Depreciation and Amortization 14,805,000
Capital Expenditure -22,270,000
Unlevered Free Cash Flow 40,927,427
Current Assets 343,444,000
Current Cash 30,215,000
Current Liabilities 204,205,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 159,024,000
Change in NCWC 20,665,000
EBIT 70,123,000
Tax Provision 24,805,000
Depreciation and Amortization 24,782,000
Capital Expenditure -27,834,000
Unlevered Free Cash Flow 63,471,156

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