DCF Tool

FLS

Flowserve Corp. – Pump and Pumping Equipment Manufacturing
Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 50 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.
Analysis Results
Intrinsic Value $17.87
Latest Price $30.90
Relative Value 73% 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 -9.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -9.6%, 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 193 180
2023 175 152
2024 158 128
2025 143 108
2026 129 91.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2540 million. This corresponds to a present value of 1680 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 659 million. Adding in the terminal value gives a total present value of 2340 million.

There are presently 131.0 million outstanding shares, so the intrinsic value per share is 17.87.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,388,677,000
Current Cash 658,452,000
Current Liabilities 1,131,805,000
Current Debt 41,058,000
Non-Cash Working Capital (NCWC) 639,478,000
Change in NCWC -36,943,000
EBIT 268,953,000
Tax Provision -2,594,000
Depreciation and Amortization 99,822,000
Capital Expenditure -54,936,000
Unlevered Free Cash Flow 276,896,000
Current Assets 2,904,333,000
Current Cash 1,095,274,000
Current Liabilities 1,141,633,000
Current Debt 8,995,000
Non-Cash Working Capital (NCWC) 676,421,000
Change in NCWC -56,353,000
EBIT 250,277,000
Tax Provision 60,031,000
Depreciation and Amortization 100,753,000
Capital Expenditure -57,405,000
Unlevered Free Cash Flow 156,846,874
Current Assets 2,505,370,000
Current Cash 670,980,000
Current Liabilities 1,112,888,000
Current Debt 11,272,000
Non-Cash Working Capital (NCWC) 732,774,000
Change in NCWC -17,931,000
EBIT 406,040,000
Tax Provision 80,070,000
Depreciation and Amortization 104,481,000
Capital Expenditure -66,170,000
Unlevered Free Cash Flow 331,315,062
Current Assets 2,383,145,000
Current Cash 619,683,000
Current Liabilities 1,080,975,000
Current Debt 68,218,000
Non-Cash Working Capital (NCWC) 750,705,000
Change in NCWC 62,714,000
EBIT 255,265,000
Tax Provision 51,224,000
Depreciation and Amortization 112,473,000
Capital Expenditure -83,993,000
Unlevered Free Cash Flow 272,280,764
Current Assets 2,558,745,000
Current Cash 703,445,000
Current Liabilities 1,242,908,000
Current Debt 75,599,000
Non-Cash Working Capital (NCWC) 687,991,000
Change in NCWC -149,463,000
EBIT 194,105,000
Tax Provision 258,679,000
Depreciation and Amortization 118,454,000
Capital Expenditure -61,602,000
Unlevered Free Cash Flow -89,416,839
Current Assets 2,297,689,000
Current Cash 367,162,000
Current Liabilities 1,178,438,000
Current Debt 85,365,000
Non-Cash Working Capital (NCWC) 837,454,000
Change in NCWC -128,366,000
EBIT 267,965,000
Tax Provision 77,380,000
Depreciation and Amortization 116,752,000
Capital Expenditure -89,699,000
Unlevered Free Cash Flow 69,263,728
Current Assets 2,631,792,000
Current Cash 366,444,000
Current Liabilities 1,359,962,000
Current Debt 60,434,000
Non-Cash Working Capital (NCWC) 965,820,000
Change in NCWC 40,751,000
EBIT 525,568,000
Tax Provision 148,922,000
Depreciation and Amortization 127,087,000
Capital Expenditure -181,861,000
Unlevered Free Cash Flow 326,160,397
Current Assets 2,794,163,000
Current Cash 450,350,000
Current Liabilities 1,471,875,000
Current Debt 53,131,000
Non-Cash Working Capital (NCWC) 925,069,000
Change in NCWC -73,088,000
EBIT 789,832,000
Tax Provision 208,305,000
Depreciation and Amortization 110,277,000
Capital Expenditure -132,619,000
Unlevered Free Cash Flow 470,004,565
Current Assets 2,847,382,000
Current Cash 363,804,000
Current Liabilities 1,558,099,000
Current Debt 72,678,000
Non-Cash Working Capital (NCWC) 998,157,000
Change in NCWC 93,340,000
EBIT 760,283,000
Tax Provision 204,701,000
Depreciation and Amortization 106,392,000
Capital Expenditure -139,090,000
Unlevered Free Cash Flow 596,356,494
Current Assets 2,740,216,000
Current Cash 304,252,000
Current Liabilities 1,590,625,000
Current Debt 59,478,000
Non-Cash Working Capital (NCWC) 904,817,000
Change in NCWC 30,517,000
EBIT 675,778,000
Tax Provision 160,766,000
Depreciation and Amortization 107,226,000
Capital Expenditure -135,539,000
Unlevered Free Cash Flow 500,335,918

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