DCF Tool

FBHS

Fortune Brands Home & Security Inc – Nonupholstered Wood Household Furniture Manufacturing
Fortune Brands Home & Security, Inc., headquartered in Deerfield, IL., creates products and services that fulfill the dreams of home. The Company's operating segments are Plumbing, Cabinets and Outdoors & Security. Its trusted brands include Moen, Riobel, Perrin & Rowe, Shaws, Victoria + Albert and Rohl under the Global Plumbing Group (GPG); more than a dozen core brands under MasterBrand Cabinets; Therma-Tru entry door systems, LARSON storm, screen and security doors, Fiberon composite decking and Master Lock and SentrySafe security products in the Outdoors & Security segment. Fortune Brands holds market leadership positions in all of its segments. Fortune Brands is part of the S&P 500 Index and a Fortune 500 Company.
Analysis Results
Intrinsic Value $231.63
Latest Price $67.88
Relative Value 71% 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 19.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.4%, 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 1.16 1.07
2023 1.38 1.18
2024 1.65 1.3
2025 1.97 1.43
2026 2.35 1.58
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.8 billion. This corresponds to a present value of 23.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.54 billion. Adding in the terminal value gives a total present value of 30.0 billion.

There are presently 129.0 million outstanding shares, so the intrinsic value per share is 231.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,744,500,000
Current Cash 471,500,000
Current Liabilities 1,971,100,000
Current Debt 400,000,000
Non-Cash Working Capital (NCWC) 701,900,000
Change in NCWC 257,600,000
EBIT 1,103,900,000
Tax Provision 232,700,000
Depreciation and Amortization 189,100,000
Capital Expenditure -214,200,000
Unlevered Free Cash Flow 1,080,825,897
Current Assets 2,208,500,000
Current Cash 419,100,000
Current Liabilities 1,345,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 444,300,000
Change in NCWC -56,400,000
EBIT 832,200,000
Tax Provision 168,800,000
Depreciation and Amortization 163,500,000
Capital Expenditure -150,500,000
Unlevered Free Cash Flow 594,558,628
Current Assets 1,898,200,000
Current Cash 387,900,000
Current Liabilities 1,409,300,000
Current Debt 399,700,000
Non-Cash Working Capital (NCWC) 500,700,000
Change in NCWC 44,600,000
EBIT 754,700,000
Tax Provision 144,000,000
Depreciation and Amortization 152,700,000
Capital Expenditure -131,800,000
Unlevered Free Cash Flow 631,295,428
Current Assets 1,686,100,000
Current Cash 262,900,000
Current Liabilities 1,492,100,000
Current Debt 525,000,000
Non-Cash Working Capital (NCWC) 456,100,000
Change in NCWC 84,200,000
EBIT 681,900,000
Tax Provision 147,000,000
Depreciation and Amortization 149,600,000
Capital Expenditure -150,100,000
Unlevered Free Cash Flow 578,934,636
Current Assets 1,601,700,000
Current Cash 323,000,000
Current Liabilities 906,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 371,900,000
Change in NCWC 21,000,000
EBIT 706,000,000
Tax Provision 159,500,000
Depreciation and Amortization 130,300,000
Capital Expenditure -165,000,000
Unlevered Free Cash Flow 514,910,270
Current Assets 1,445,200,000
Current Cash 251,500,000
Current Liabilities 842,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 350,900,000
Change in NCWC -72,200,000
EBIT 646,600,000
Tax Provision 169,700,000
Depreciation and Amortization 122,700,000
Capital Expenditure -149,300,000
Unlevered Free Cash Flow 359,296,272
Current Assets 1,418,700,000
Current Cash 238,500,000
Current Liabilities 757,900,000
Current Debt 800,000
Non-Cash Working Capital (NCWC) 423,100,000
Change in NCWC -10,800,000
EBIT 512,700,000
Tax Provision 153,400,000
Depreciation and Amortization 115,100,000
Capital Expenditure -128,500,000
Unlevered Free Cash Flow 317,488,519
Current Assets 1,299,100,000
Current Cash 191,900,000
Current Liabilities 699,600,000
Current Debt 26,300,000
Non-Cash Working Capital (NCWC) 433,900,000
Change in NCWC 80,600,000
EBIT 410,500,000
Tax Provision 118,300,000
Depreciation and Amortization 98,800,000
Capital Expenditure -127,500,000
Unlevered Free Cash Flow 338,485,353
Current Assets 1,327,400,000
Current Cash 241,400,000
Current Liabilities 738,700,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 353,300,000
Change in NCWC 65,900,000
EBIT 382,500,000
Tax Provision 114,000,000
Depreciation and Amortization 90,400,000
Capital Expenditure -96,700,000
Unlevered Free Cash Flow 315,672,049
Current Assets 1,228,000,000
Current Cash 336,000,000
Current Liabilities 632,600,000
Current Debt 28,000,000
Non-Cash Working Capital (NCWC) 287,400,000
Change in NCWC 31,200,000
EBIT 182,000,000
Tax Provision 34,300,000
Depreciation and Amortization 101,300,000
Capital Expenditure -75,000,000
Unlevered Free Cash Flow 198,963,636

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