DCF Tool

GEF

Greif Inc – Metal Can Manufacturing
Greif is a global leader in industrial packaging products and services and is pursuing its vision: In industrial packaging, be the best performing customer service company in the world. The Company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The Company also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company is strategically positioned in over 40 countries to serve global as well as regional customers.
Analysis Results
Intrinsic Value $18,893.08
Latest Price $58.83
Relative Value 100% 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 68.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 68.3%, 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 (billion) Present value (billion)
2022 2.5 2.38
2023 4.21 3.81
2024 7.08 6.1
2025 11.9 9.76
2026 20.1 15.6
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 602 billion. This corresponds to a present value of 446 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 37.7 billion. Adding in the terminal value gives a total present value of 484 billion.

There are presently 25.6 million outstanding shares, so the intrinsic value per share is 18893.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,328,200,000
Current Cash 249,200,000
Current Liabilities 2,626,400,000
Current Debt 341,600,000
Non-Cash Working Capital (NCWC) 794,200,000
Change in NCWC 453,500,000
EBIT 1,062,600,000
Tax Provision 139,200,000
Depreciation and Amortization 468,800,000
Capital Expenditure -294,600,000
Unlevered Free Cash Flow 1,537,116,570
Current Assets 1,251,900,000
Current Cash 105,900,000
Current Liabilities 956,800,000
Current Debt 151,500,000
Non-Cash Working Capital (NCWC) 340,700,000
Change in NCWC -98,500,000
EBIT 400,200,000
Tax Provision 63,300,000
Depreciation and Amortization 242,500,000
Capital Expenditure -136,800,000
Unlevered Free Cash Flow 272,364,498
Current Assets 1,249,000,000
Current Cash 77,300,000
Current Liabilities 825,400,000
Current Debt 92,900,000
Non-Cash Working Capital (NCWC) 439,200,000
Change in NCWC 200,800,000
EBIT 455,400,000
Tax Provision 70,700,000
Depreciation and Amortization 206,100,000
Capital Expenditure -162,200,000
Unlevered Free Cash Flow 578,556,851
Current Assets 976,700,000
Current Cash 94,200,000
Current Liabilities 670,200,000
Current Debt 26,100,000
Non-Cash Working Capital (NCWC) 238,400,000
Change in NCWC 44,600,000
EBIT 394,000,000
Tax Provision 73,300,000
Depreciation and Amortization 126,900,000
Capital Expenditure -149,100,000
Unlevered Free Cash Flow 321,022,853
Current Assets 994,500,000
Current Cash 142,300,000
Current Liabilities 687,900,000
Current Debt 29,500,000
Non-Cash Working Capital (NCWC) 193,800,000
Change in NCWC -15,200,000
EBIT 336,300,000
Tax Provision 67,200,000
Depreciation and Amortization 120,500,000
Capital Expenditure -106,300,000
Unlevered Free Cash Flow 223,587,889
Current Assets 920,300,000
Current Cash 103,700,000
Current Liabilities 659,200,000
Current Debt 51,600,000
Non-Cash Working Capital (NCWC) 209,000,000
Change in NCWC -117,700,000
EBIT 308,900,000
Tax Provision 66,500,000
Depreciation and Amortization 127,700,000
Capital Expenditure -111,600,000
Unlevered Free Cash Flow 62,639,084
Current Assets 1,008,500,000
Current Cash 106,200,000
Current Liabilities 647,000,000
Current Debt 71,400,000
Non-Cash Working Capital (NCWC) 326,700,000
Change in NCWC 43,100,000
EBIT 257,400,000
Tax Provision 48,400,000
Depreciation and Amortization 134,600,000
Capital Expenditure -97,400,000
Unlevered Free Cash Flow 229,930,449
Current Assets 1,154,700,000
Current Cash 85,100,000
Current Liabilities 851,700,000
Current Debt 65,700,000
Non-Cash Working Capital (NCWC) 283,600,000
Change in NCWC -4,700,000
EBIT 316,200,000
Tax Provision 115,000,000
Depreciation and Amortization 155,800,000
Capital Expenditure -194,700,000
Unlevered Free Cash Flow 45,189,118
Current Assets 1,094,000,000
Current Cash 78,100,000
Current Liabilities 801,700,000
Current Debt 74,100,000
Non-Cash Working Capital (NCWC) 288,300,000
Change in NCWC 75,900,000
EBIT 358,200,000
Tax Provision 97,600,000
Depreciation and Amortization 156,900,000
Capital Expenditure -145,400,000
Unlevered Free Cash Flow 303,830,656
Current Assets 1,064,000,000
Current Cash 91,700,000
Current Liabilities 862,000,000
Current Debt 102,100,000
Non-Cash Working Capital (NCWC) 212,400,000
Change in NCWC -185,590,000
EBIT 311,600,000
Tax Provision 56,800,000
Depreciation and Amortization 154,700,000
Capital Expenditure -169,700,000
Unlevered Free Cash Flow 17,066,900

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