DCF Tool

GD

General Dynamics Corp. – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $37.9 billion in revenue in 2020.
Analysis Results
Intrinsic Value $364.54
Latest Price $210.26
Relative Value 42% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 4.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.5%, 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)
2023 4.39 4.12
2024 4.59 4.04
2025 4.79 3.96
2026 5.01 3.89
2027 5.23 3.81
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 117 billion. This corresponds to a present value of 80.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 19.8 billion. Adding in the terminal value gives a total present value of 100 billion.

There are presently 274.0 million outstanding shares, so the intrinsic value per share is 364.54.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 21,063,000,000
Current Cash 1,242,000,000
Current Liabilities 15,341,000,000
Current Debt 1,253,000,000
Non-Cash Working Capital (NCWC) 5,733,000,000
Change in NCWC 322,000,000
EBIT 4,211,000,000
Tax Provision 646,000,000
Depreciation and Amortization 884,000,000
Capital Expenditure -1,114,000,000
Unlevered Free Cash Flow 3,628,989,593
Current Assets 19,987,000,000
Current Cash 1,603,000,000
Current Liabilities 13,978,000,000
Current Debt 1,005,000,000
Non-Cash Working Capital (NCWC) 5,411,000,000
Change in NCWC -347,000,000
EBIT 4,163,000,000
Tax Provision 616,000,000
Depreciation and Amortization 890,000,000
Capital Expenditure -887,000,000
Unlevered Free Cash Flow 3,156,875,548
Current Assets 21,543,000,000
Current Cash 2,824,000,000
Current Liabilities 15,964,000,000
Current Debt 3,003,000,000
Non-Cash Working Capital (NCWC) 5,758,000,000
Change in NCWC 761,000,000
EBIT 4,133,000,000
Tax Provision 571,000,000
Depreciation and Amortization 878,000,000
Capital Expenditure -967,000,000
Unlevered Free Cash Flow 4,173,661,583
Current Assets 19,780,000,000
Current Cash 902,000,000
Current Liabilities 16,801,000,000
Current Debt 2,920,000,000
Non-Cash Working Capital (NCWC) 4,997,000,000
Change in NCWC 1,537,000,000
EBIT 4,648,000,000
Tax Provision 718,000,000
Depreciation and Amortization 829,000,000
Capital Expenditure -987,000,000
Unlevered Free Cash Flow 5,232,791,527
Current Assets 18,189,000,000
Current Cash 963,000,000
Current Liabilities 14,739,000,000
Current Debt 973,000,000
Non-Cash Working Capital (NCWC) 3,460,000,000
Change in NCWC 1,212,000,000
EBIT 4,457,000,000
Tax Provision 727,000,000
Depreciation and Amortization 763,000,000
Capital Expenditure -690,000,000
Unlevered Free Cash Flow 4,948,795,838
Current Assets 18,328,000,000
Current Cash 2,983,000,000
Current Liabilities 13,099,000,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 2,248,000,000
Change in NCWC 1,081,000,000
EBIT 4,177,000,000
Tax Provision 1,165,000,000
Depreciation and Amortization 441,000,000
Capital Expenditure -428,000,000
Unlevered Free Cash Flow 4,077,425,067
Current Assets 15,447,000,000
Current Cash 2,334,000,000
Current Liabilities 12,846,000,000
Current Debt 900,000,000
Non-Cash Working Capital (NCWC) 1,167,000,000
Change in NCWC 1,325,000,000
EBIT 4,309,000,000
Tax Provision 1,169,000,000
Depreciation and Amortization 454,000,000
Capital Expenditure -392,000,000
Unlevered Free Cash Flow 4,505,449,066
Current Assets 14,571,000,000
Current Cash 2,785,000,000
Current Liabilities 12,445,000,000
Current Debt 501,000,000
Non-Cash Working Capital (NCWC) -158,000,000
Change in NCWC 73,000,000
EBIT 4,178,000,000
Tax Provision 1,137,000,000
Depreciation and Amortization 482,000,000
Capital Expenditure -569,000,000
Unlevered Free Cash Flow 3,005,934,178
Current Assets 17,407,000,000
Current Cash 4,388,000,000
Current Liabilities 13,751,000,000
Current Debt 501,000,000
Non-Cash Working Capital (NCWC) -231,000,000
Change in NCWC -622,000,000
EBIT 3,889,000,000
Tax Provision 1,129,000,000
Depreciation and Amortization 496,000,000
Capital Expenditure -521,000,000
Unlevered Free Cash Flow 2,087,165,439
Current Assets 17,886,000,000
Current Cash 5,301,000,000
Current Liabilities 12,194,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 391,000,000
Change in NCWC -437,000,000
EBIT 3,685,000,000
Tax Provision 1,121,000,000
Depreciation and Amortization 556,000,000
Capital Expenditure -440,000,000
Unlevered Free Cash Flow 2,218,758,802
Current Assets 15,744,000,000
Current Cash 3,296,000,000
Current Liabilities 11,620,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 828,000,000
Change in NCWC -769,000,000
EBIT 2,827,000,000
Tax Provision 873,000,000
Depreciation and Amortization 620,000,000
Capital Expenditure -450,000,000
Unlevered Free Cash Flow 1,355,000,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.