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H.B. Fuller Company – Adhesive Manufacturing
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2019 net revenue of approximately $3 billion, H.B. Fuller's commitment to innovation brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, health and beauty, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive.
Analysis Results
Intrinsic Value $285.72
Latest Price $67.67
Relative Value 76% undervalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
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 11.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.2%, 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 (million) Present value (million)
2023 355 344
2024 395 370
2025 439 398
2026 489 428
2027 544 461
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 16300 million. This corresponds to a present value of 13400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2000 million. Adding in the terminal value gives a total present value of 15400 million.

There are presently 53.8 million outstanding shares, so the intrinsic value per share is 285.72.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,299,375,000
Current Cash 79,910,000
Current Liabilities 705,732,000
Current Debt 28,860,000
Non-Cash Working Capital (NCWC) 542,593,000
Change in NCWC 95,076,000
EBIT 328,383,000
Tax Provision 77,186,000
Depreciation and Amortization 146,976,000
Capital Expenditure -129,964,000
Unlevered Free Cash Flow 342,073,255
Current Assets 1,221,170,000
Current Cash 61,786,000
Current Liabilities 736,850,000
Current Debt 24,983,000
Non-Cash Working Capital (NCWC) 447,517,000
Change in NCWC 41,482,000
EBIT 260,269,000
Tax Provision 63,033,000
Depreciation and Amortization 143,174,000
Capital Expenditure -96,089,000
Unlevered Free Cash Flow 275,762,720
Current Assets 1,019,776,000
Current Cash 100,534,000
Current Liabilities 530,132,000
Current Debt 16,925,000
Non-Cash Working Capital (NCWC) 406,035,000
Change in NCWC -53,711,000
EBIT 225,670,000
Tax Provision 41,921,000
Depreciation and Amortization 138,817,000
Capital Expenditure -87,288,000
Unlevered Free Cash Flow 166,398,088
Current Assets 1,033,362,000
Current Cash 112,191,000
Current Liabilities 542,157,000
Current Debt 80,732,000
Non-Cash Working Capital (NCWC) 459,746,000
Change in NCWC -37,065,000
EBIT 233,418,000
Tax Provision 49,408,000
Depreciation and Amortization 141,206,000
Capital Expenditure -61,982,000
Unlevered Free Cash Flow 211,595,926
Current Assets 1,087,732,000
Current Cash 150,793,000
Current Liabilities 546,123,000
Current Debt 105,995,000
Non-Cash Working Capital (NCWC) 496,811,000
Change in NCWC -1,853,000
EBIT 262,912,000
Tax Provision -6,356,000
Depreciation and Amortization 145,126,000
Capital Expenditure -68,263,000
Unlevered Free Cash Flow 337,922,000
Current Assets 1,144,992,000
Current Cash 194,398,000
Current Liabilities 504,913,000
Current Debt 52,983,000
Non-Cash Working Capital (NCWC) 498,664,000
Change in NCWC 103,988,000
EBIT 134,817,000
Tax Provision 9,086,000
Depreciation and Amortization 87,315,000
Capital Expenditure -54,934,000
Unlevered Free Cash Flow 253,005,234
Current Assets 811,253,000
Current Cash 142,245,000
Current Liabilities 391,844,000
Current Debt 117,512,000
Non-Cash Working Capital (NCWC) 394,676,000
Change in NCWC 9,061,000
EBIT 209,558,000
Tax Provision 50,436,000
Depreciation and Amortization 77,684,000
Capital Expenditure -63,310,000
Unlevered Free Cash Flow 172,534,309
Current Assets 801,051,000
Current Cash 119,168,000
Current Liabilities 349,525,000
Current Debt 53,257,000
Non-Cash Working Capital (NCWC) 385,615,000
Change in NCWC -11,902,000
EBIT 176,392,000
Tax Provision 55,855,000
Depreciation and Amortization 75,289,000
Capital Expenditure -58,624,000
Unlevered Free Cash Flow 112,855,252
Current Assets 765,136,000
Current Cash 77,569,000
Current Liabilities 317,199,000
Current Debt 27,149,000
Non-Cash Working Capital (NCWC) 397,517,000
Change in NCWC 98,133,000
EBIT 155,028,000
Tax Provision 34,348,000
Depreciation and Amortization 70,494,000
Capital Expenditure -139,794,000
Unlevered Free Cash Flow 120,843,665
Current Assets 794,694,000
Current Cash 155,121,000
Current Liabilities 360,778,000
Current Debt 20,589,000
Non-Cash Working Capital (NCWC) 299,384,000
Change in NCWC 5,482,000
EBIT 203,882,000
Tax Provision 39,949,000
Depreciation and Amortization 61,657,000
Capital Expenditure -126,675,000
Unlevered Free Cash Flow 84,423,675
Current Assets 799,344,000
Current Cash 200,436,000
Current Liabilities 350,119,000
Current Debt 45,113,000
Non-Cash Working Capital (NCWC) 293,902,000
Change in NCWC 55,761,000
EBIT 171,759,000
Tax Provision 30,479,000
Depreciation and Amortization 57,416,000
Capital Expenditure -35,913,000
Unlevered Free Cash Flow 196,018,498

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