DCF Tool

FLR

Fluor Corporation – Engineering Services
Fluor Corporation is building a better future by applying world-class expertise to solve its clients' greatest challenges. Fluor's 44,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $15.7 billion in 2020 and is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than 100 years.
Analysis Results
Intrinsic Value $9.53
Latest Price $25.70
Relative Value 170% 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 -15.5%.

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 -15.5%, 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 (million) Present value (million)
2022 147 137
2023 124 108
2024 105 84.5
2025 88.6 66.4
2026 74.8 52.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1400 million. This corresponds to a present value of 907 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 447 million. Adding in the terminal value gives a total present value of 1350 million.

There are presently 142.0 million outstanding shares, so the intrinsic value per share is 9.53.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,562,642,000
Current Cash 2,336,604,000
Current Liabilities 3,904,060,000
Current Debt 911,000
Non-Cash Working Capital (NCWC) -677,111,000
Change in NCWC 57,628,000
EBIT 195,144,000
Tax Provision 16,489,000
Depreciation and Amortization 74,356,000
Capital Expenditure -75,073,000
Unlevered Free Cash Flow 252,055,000
Current Assets 5,034,009,000
Current Cash 2,222,126,000
Current Liabilities 3,572,037,000
Current Debt 25,415,000
Non-Cash Working Capital (NCWC) -734,739,000
Change in NCWC -353,216,000
EBIT 144,559,000
Tax Provision 18,592,000
Depreciation and Amortization 105,574,000
Capital Expenditure -113,442,000
Unlevered Free Cash Flow -216,525,000
Current Assets 5,516,272,000
Current Cash 2,004,461,000
Current Liabilities 3,932,061,000
Current Debt 38,727,000
Non-Cash Working Capital (NCWC) -381,523,000
Change in NCWC -317,216,000
EBIT -586,470,000
Tax Provision 440,982,000
Depreciation and Amortization 170,481,000
Capital Expenditure -180,842,000
Unlevered Free Cash Flow -914,047,000
Current Assets 5,440,893,000
Current Cash 1,979,574,000
Current Liabilities 3,552,513,000
Current Debt 26,887,000
Non-Cash Working Capital (NCWC) -64,307,000
Change in NCWC -153,546,000
EBIT 521,966,000
Tax Provision 188,794,000
Depreciation and Amortization 216,656,000
Capital Expenditure -210,998,000
Unlevered Free Cash Flow 169,524,518
Current Assets 5,601,257,000
Current Cash 1,965,209,000
Current Liabilities 3,574,170,000
Current Debt 27,361,000
Non-Cash Working Capital (NCWC) 89,239,000
Change in NCWC 174,228,000
EBIT 426,303,000
Tax Provision 121,972,000
Depreciation and Amortization 225,269,000
Capital Expenditure -283,107,000
Unlevered Free Cash Flow 408,139,395
Current Assets 5,610,270,000
Current Cash 1,961,473,000
Current Liabilities 3,816,029,000
Current Debt 82,243,000
Non-Cash Working Capital (NCWC) -84,989,000
Change in NCWC -280,946,000
EBIT 599,243,000
Tax Provision 219,151,000
Depreciation and Amortization 225,913,000
Capital Expenditure -235,904,000
Unlevered Free Cash Flow 68,048,585
Current Assets 5,278,287,000
Current Cash 2,146,978,000
Current Liabilities 2,935,352,000
Current Debt 0
Non-Cash Working Capital (NCWC) 195,957,000
Change in NCWC -161,723,000
EBIT 926,367,000
Tax Provision 245,888,000
Depreciation and Amortization 189,738,000
Capital Expenditure -240,220,000
Unlevered Free Cash Flow 400,650,332
Current Assets 5,758,047,000
Current Cash 2,098,256,000
Current Liabilities 3,330,853,000
Current Debt 28,742,000
Non-Cash Working Capital (NCWC) 357,680,000
Change in NCWC 200,923,000
EBIT 1,216,322,000
Tax Provision 352,815,000
Depreciation and Amortization 192,594,000
Capital Expenditure -324,704,000
Unlevered Free Cash Flow 928,978,106
Current Assets 6,003,683,000
Current Cash 2,469,605,000
Current Liabilities 3,407,160,000
Current Debt 29,839,000
Non-Cash Working Capital (NCWC) 156,757,000
Change in NCWC 220,610,000
EBIT 1,190,043,000
Tax Provision 354,573,000
Depreciation and Amortization 207,098,000
Capital Expenditure -288,487,000
Unlevered Free Cash Flow 970,944,133
Current Assets 6,094,137,000
Current Cash 2,291,668,000
Current Liabilities 3,887,114,000
Current Debt 20,792,000
Non-Cash Working Capital (NCWC) -63,853,000
Change in NCWC 134,026,000
EBIT 733,987,000
Tax Provision 162,438,000
Depreciation and Amortization 212,381,000
Capital Expenditure -254,747,000
Unlevered Free Cash Flow 663,102,258

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