DCF Tool


Forward Air Corp. – Postal Service
forward air corporation is a leading provider of time-definite surface transportation and related logistics services to the north american air freight and expedited ltl market. we provide scheduled surface transportation of cargo as a cost effective, reliable alternative to air transportation. we transport air freight that must be delivered at a specific time, but is less time-sensitive than traditional integrated services. in the past decade, we have greatly expanded our service offerings to include an array of logistics services, including pick-up and delivery, intermodal drayage, pool distribution, and specialized temperature-controlled logistics services. our network of freight terminals are located on or near airports in 92 u.s. and canadian cities, including our central sorting facility in columbus, ohio and 11 regional sort centers that create the most effective linehaul network in the industry.
Analysis Results
Intrinsic Value $236.89
Latest Price $65.90
Relative Value 72% 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 20.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.1%, 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 242 222
2024 290 246
2025 349 272
2026 419 301
2027 503 333
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7740 million. This corresponds to a present value of 4710 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1370 million. Adding in the terminal value gives a total present value of 6090 million.

There are presently 25.7 million outstanding shares, so the intrinsic value per share is 236.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 304,315,000
Current Cash 45,822,000
Current Liabilities 169,398,000
Current Debt 9,444,000
Non-Cash Working Capital (NCWC) 98,539,000
Change in NCWC 11,652,000
EBIT 265,976,000
Tax Provision 67,647,000
Depreciation and Amortization 47,386,000
Capital Expenditure -40,729,000
Unlevered Free Cash Flow 215,305,486
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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