DCF Tool

FMC

FMC Corp. – Pesticide and Other Agricultural Chemical Manufacturing
FMC Corporation, an agricultural sciences company, provides innovative solutions to growers around the world with a robust product portfolio fueled by a market-driven discovery and development pipeline in crop protection, plant health, and professional pest and turf management. This powerful combination of advanced technologies includes leading insect control products based on Rynaxypyr® and Cyazypyr® active ingredients; Authority®, Boral®, Centium®, Command® and Gamit® branded herbicides; Talstar® and Hero® branded insecticides; and flutriafol-based fungicides. The FMC portfolio also includes biologicals such as Quartzo® and Presence® bionematicides. FMC Corporation employs approximately 6,400 employees around the globe.
Analysis Results
Intrinsic Value $359.41
Latest Price $134.36
Relative Value 63% 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 18.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.2%, 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 1.33 1.25
2023 1.57 1.38
2024 1.86 1.53
2025 2.2 1.69
2026 2.6 1.87
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 55.6 billion. This corresponds to a present value of 37.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.72 billion. Adding in the terminal value gives a total present value of 45.3 billion.

There are presently 126.0 million outstanding shares, so the intrinsic value per share is 359.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,937,600,000
Current Cash 516,800,000
Current Liabilities 3,520,300,000
Current Debt 440,800,000
Non-Cash Working Capital (NCWC) 1,341,300,000
Change in NCWC 25,300,000
EBIT 1,152,900,000
Tax Provision 91,600,000
Depreciation and Amortization 170,900,000
Capital Expenditure -100,100,000
Unlevered Free Cash Flow 1,130,846,453
Current Assets 4,375,600,000
Current Cash 568,900,000
Current Liabilities 2,829,000,000
Current Debt 338,300,000
Non-Cash Working Capital (NCWC) 1,316,000,000
Change in NCWC 76,500,000
EBIT 1,034,400,000
Tax Provision 150,900,000
Depreciation and Amortization 162,700,000
Capital Expenditure -67,200,000
Unlevered Free Cash Flow 992,518,169
Current Assets 4,074,800,000
Current Cash 339,100,000
Current Liabilities 2,723,900,000
Current Debt 227,700,000
Non-Cash Working Capital (NCWC) 1,239,500,000
Change in NCWC -183,300,000
EBIT 992,600,000
Tax Provision 111,500,000
Depreciation and Amortization 150,100,000
Capital Expenditure -93,900,000
Unlevered Free Cash Flow 696,530,687
Current Assets 4,030,200,000
Current Cash 161,700,000
Current Liabilities 2,993,400,000
Current Debt 547,700,000
Non-Cash Working Capital (NCWC) 1,422,800,000
Change in NCWC 69,900,000
EBIT 922,400,000
Tax Provision 88,800,000
Depreciation and Amortization 168,200,000
Capital Expenditure -156,600,000
Unlevered Free Cash Flow 893,762,686
Current Assets 3,652,700,000
Current Cash 283,000,000
Current Liabilities 2,209,400,000
Current Debt 192,600,000
Non-Cash Working Capital (NCWC) 1,352,900,000
Change in NCWC -88,100,000
EBIT 324,700,000
Tax Provision 264,100,000
Depreciation and Amortization 113,000,000
Capital Expenditure -85,700,000
Unlevered Free Cash Flow -200,000
Current Assets 2,849,200,000
Current Cash 64,200,000
Current Liabilities 1,438,200,000
Current Debt 94,200,000
Non-Cash Working Capital (NCWC) 1,441,000,000
Change in NCWC -111,600,000
EBIT 492,500,000
Tax Provision 93,900,000
Depreciation and Amortization 137,100,000
Capital Expenditure -130,800,000
Unlevered Free Cash Flow 250,902,475
Current Assets 2,971,900,000
Current Cash 78,600,000
Current Liabilities 1,453,300,000
Current Debt 112,600,000
Non-Cash Working Capital (NCWC) 1,552,600,000
Change in NCWC 112,900,000
EBIT 171,900,000
Tax Provision 47,400,000
Depreciation and Amortization 115,700,000
Capital Expenditure -108,500,000
Unlevered Free Cash Flow 292,000,000
Current Assets 2,934,400,000
Current Cash 109,500,000
Current Liabilities 1,910,400,000
Current Debt 525,200,000
Non-Cash Working Capital (NCWC) 1,439,700,000
Change in NCWC -93,200,000
EBIT 580,900,000
Tax Provision 73,500,000
Depreciation and Amortization 131,200,000
Capital Expenditure -224,700,000
Unlevered Free Cash Flow 306,166,701
Current Assets 2,945,000,000
Current Cash 123,200,000
Current Liabilities 1,986,700,000
Current Debt 697,800,000
Non-Cash Working Capital (NCWC) 1,532,900,000
Change in NCWC 507,300,000
EBIT 699,800,000
Tax Provision 148,600,000
Depreciation and Amortization 127,200,000
Capital Expenditure -221,900,000
Unlevered Free Cash Flow 943,557,200
Current Assets 2,181,800,000
Current Cash 77,100,000
Current Liabilities 1,135,400,000
Current Debt 56,300,000
Non-Cash Working Capital (NCWC) 1,025,600,000
Change in NCWC 188,500,000
EBIT 690,200,000
Tax Provision 146,700,000
Depreciation and Amortization 137,800,000
Capital Expenditure -206,600,000
Unlevered Free Cash Flow 644,617,042

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