DCF Tool

FWRD

Forward Air Corp. – Postal Service
Forward Air Corporation is a leading asset-light freight and logistics company. It provides LTL, final mile, truckload, intermodal drayage and pool distribution services across the United States and in Canada. Headquartered in Greeneville, Tennessee, Forward operates approximately 200 facilities across the country and employs more than 5,200 people nationwide. It is more than a transportation company. As a single resource for your shipping needs, Forward is your supply chain partner.
Analysis Results
Intrinsic Value $65.03
Latest Price $107.43
Relative Value 65% 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 7.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.3%, 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 106 97.4
2023 114 96.0
2024 122 94.6
2025 131 93.3
2026 141 92.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2090 million. This corresponds to a present value of 1260 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 473 million. Adding in the terminal value gives a total present value of 1730 million.

There are presently 26.6 million outstanding shares, so the intrinsic value per share is 65.03.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 282,807,000
Current Cash 37,316,000
Current Liabilities 164,692,000
Current Debt 6,088,000
Non-Cash Working Capital (NCWC) 86,887,000
Change in NCWC 51,064,000
EBIT 159,301,000
Tax Provision 38,872,000
Depreciation and Amortization 39,552,000
Capital Expenditure -39,109,000
Unlevered Free Cash Flow 170,847,825
Current Assets 245,896,000
Current Cash 40,254,000
Current Liabilities 171,620,000
Current Debt 1,801,000
Non-Cash Working Capital (NCWC) 35,823,000
Change in NCWC -3,000
EBIT 73,924,000
Tax Provision 16,593,000
Depreciation and Amortization 37,125,000
Capital Expenditure -20,268,000
Unlevered Free Cash Flow 73,093,153
Current Assets 236,318,000
Current Cash 64,749,000
Current Liabilities 137,164,000
Current Debt 1,421,000
Non-Cash Working Capital (NCWC) 35,826,000
Change in NCWC -65,185,000
EBIT 118,823,000
Tax Provision 29,012,000
Depreciation and Amortization 42,109,000
Capital Expenditure -28,209,000
Unlevered Free Cash Flow 37,848,367
Current Assets 201,082,000
Current Cash 25,657,000
Current Liabilities 74,723,000
Current Debt 309,000
Non-Cash Working Capital (NCWC) 101,011,000
Change in NCWC 1,935,000
EBIT 122,031,000
Tax Provision 28,195,000
Depreciation and Amortization 42,183,000
Capital Expenditure -42,293,000
Unlevered Free Cash Flow 95,242,457
Current Assets 162,742,000
Current Cash 3,893,000
Current Liabilities 60,132,000
Current Debt 359,000
Non-Cash Working Capital (NCWC) 99,076,000
Change in NCWC 21,232,000
EBIT 108,672,000
Tax Provision 20,131,000
Depreciation and Amortization 41,055,000
Capital Expenditure -38,265,000
Unlevered Free Cash Flow 112,334,434
Current Assets 136,270,000
Current Cash 8,511,000
Current Liabilities 77,927,000
Current Debt 28,012,000
Non-Cash Working Capital (NCWC) 77,844,000
Change in NCWC -9,144,000
EBIT 102,421,000
Tax Provision 30,716,000
Depreciation and Amortization 38,210,000
Capital Expenditure -42,186,000
Unlevered Free Cash Flow 35,418,846
Current Assets 173,457,000
Current Cash 33,312,000
Current Liabilities 109,044,000
Current Debt 55,887,000
Non-Cash Working Capital (NCWC) 86,988,000
Change in NCWC 21,617,000
EBIT 81,772,000
Tax Provision 24,092,000
Depreciation and Amortization 37,157,000
Capital Expenditure -40,495,000
Unlevered Free Cash Flow 75,322,429
Current Assets 149,955,000
Current Cash 41,429,000
Current Liabilities 43,431,000
Current Debt 276,000
Non-Cash Working Capital (NCWC) 65,371,000
Change in NCWC 6,920,000
EBIT 96,406,000
Tax Provision 34,916,000
Depreciation and Amortization 31,133,000
Capital Expenditure -39,487,000
Unlevered Free Cash Flow 59,939,352
Current Assets 220,360,000
Current Cash 127,367,000
Current Liabilities 34,611,000
Current Debt 69,000
Non-Cash Working Capital (NCWC) 58,451,000
Change in NCWC -119,000
EBIT 84,355,000
Tax Provision 29,455,000
Depreciation and Amortization 23,579,000
Capital Expenditure -35,439,000
Unlevered Free Cash Flow 42,769,025
Current Assets 198,396,000
Current Cash 112,182,000
Current Liabilities 27,920,000
Current Debt 276,000
Non-Cash Working Capital (NCWC) 58,570,000
Change in NCWC 11,032,000
EBIT 83,532,000
Tax Provision 30,487,000
Depreciation and Amortization 21,021,000
Capital Expenditure -21,353,000
Unlevered Free Cash Flow 63,606,781

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