DCF Tool

ESE

Esco Technologies, Inc. – Other Communications Equipment Manufacturing
esco technologies inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. it operates through three segments: aerospace & defense, utility solutions group (usg), and rf shielding and test. the aerospace & defense segment designs and manufactures filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; filter mechanisms used in micro-propulsion devices for satellites; and custom designed filters for manned aircraft and submarines. it also designs, develops, and manufactures elastomeric-based signature reduction solutions for u.s. naval vessels; and mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries. the usg segment provides diagnostic testing solutions that enable electric power grid operators to assess the in
Analysis Results
Intrinsic Value $84.38
Latest Price $105.96
Relative Value 26% 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 10.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.0%, 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)
2023 120 110
2024 132 111
2025 145 113
2026 159 114
2027 175 115
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2660 million. This corresponds to a present value of 1610 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 564 million. Adding in the terminal value gives a total present value of 2180 million.

There are presently 25.8 million outstanding shares, so the intrinsic value per share is 84.38.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 572,622,000
Current Cash 97,724,000
Current Liabilities 318,129,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 176,769,000
Change in NCWC 24,611,000
EBIT 110,982,000
Tax Provision 24,115,000
Depreciation and Amortization 48,343,000
Capital Expenditure -45,013,000
Unlevered Free Cash Flow 113,777,785
Current Assets 466,154,000
Current Cash 56,232,000
Current Liabilities 277,764,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 152,158,000
Change in NCWC -8,251,000
EBIT 82,032,000
Tax Provision 17,175,000
Depreciation and Amortization 42,049,000
Capital Expenditure -35,488,000
Unlevered Free Cash Flow 62,877,240
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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