DCF Tool

GFF

Griffon Corp. – Metal Window and Door Manufacturing
Griffon Corporation is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as in connection with divestitures. In order to further diversify, Griffon also seeks out, evaluates and, when appropriate, will acquire additional businesses that offer potentially attractive returns on capital.
Analysis Results
Intrinsic Value $140.95
Latest Price $28.66
Relative Value 80% undervalued
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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 15.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.6%, 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 236 222
2023 272 241
2024 315 261
2025 364 284
2026 420 308
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9760 million. This corresponds to a present value of 6730 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1320 million. Adding in the terminal value gives a total present value of 8040 million.

There are presently 57.1 million outstanding shares, so the intrinsic value per share is 140.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,732,558,000
Current Cash 497,306,000
Current Liabilities 1,063,272,000
Current Debt 24,972,000
Non-Cash Working Capital (NCWC) 1,196,952,000
Change in NCWC 740,913,000
EBIT 341,166,000
Tax Provision 79,880,000
Depreciation and Amortization 104,604,000
Capital Expenditure -73,902,000
Unlevered Free Cash Flow 990,220,354
Current Assets 1,113,452,000
Current Cash 218,089,000
Current Liabilities 449,246,000
Current Debt 9,922,000
Non-Cash Working Capital (NCWC) 456,039,000
Change in NCWC -17,189,000
EBIT 155,028,000
Tax Provision 29,328,000
Depreciation and Amortization 62,409,000
Capital Expenditure -48,998,000
Unlevered Free Cash Flow 96,310,101
Current Assets 925,179,000
Current Cash 72,377,000
Current Liabilities 390,099,000
Current Debt 10,525,000
Non-Cash Working Capital (NCWC) 473,228,000
Change in NCWC 12,816,000
EBIT 135,265,000
Tax Provision 26,556,000
Depreciation and Amortization 61,848,000
Capital Expenditure -45,361,000
Unlevered Free Cash Flow 114,800,794
Current Assets 912,874,000
Current Cash 72,402,000
Current Liabilities 393,071,000
Current Debt 13,011,000
Non-Cash Working Capital (NCWC) 460,412,000
Change in NCWC -226,683,000
EBIT 96,450,000
Tax Provision 555,000
Depreciation and Amortization 55,803,000
Capital Expenditure -50,138,000
Unlevered Free Cash Flow -126,151,251
Current Assets 1,098,129,000
Current Cash 51,033,000
Current Liabilities 371,079,000
Current Debt 11,078,000
Non-Cash Working Capital (NCWC) 687,095,000
Change in NCWC 275,623,000
EBIT 69,027,000
Tax Provision -1,085,000
Depreciation and Amortization 47,878,000
Capital Expenditure -34,937,000
Unlevered Free Cash Flow 357,591,000
Current Assets 780,958,000
Current Cash 73,867,000
Current Liabilities 318,263,000
Current Debt 22,644,000
Non-Cash Working Capital (NCWC) 411,472,000
Change in NCWC 23,913,000
EBIT 109,407,000
Tax Provision 23,154,000
Depreciation and Amortization 70,208,000
Capital Expenditure -90,759,000
Unlevered Free Cash Flow 65,120,033
Current Assets 756,862,000
Current Cash 62,266,000
Current Liabilities 323,630,000
Current Debt 16,593,000
Non-Cash Working Capital (NCWC) 387,559,000
Change in NCWC -814,000
EBIT 101,017,000
Tax Provision 19,347,000
Depreciation and Amortization 69,800,000
Capital Expenditure -73,620,000
Unlevered Free Cash Flow 59,945,236
Current Assets 815,099,000
Current Cash 103,449,000
Current Liabilities 331,163,000
Current Debt 7,886,000
Non-Cash Working Capital (NCWC) 388,373,000
Change in NCWC 16,928,000
EBIT 84,300,000
Tax Provision -5,539,000
Depreciation and Amortization 67,396,000
Capital Expenditure -77,094,000
Unlevered Free Cash Flow 91,530,000
Current Assets 824,410,000
Current Cash 179,324,000
Current Liabilities 284,409,000
Current Debt 10,768,000
Non-Cash Working Capital (NCWC) 371,445,000
Change in NCWC 10,564,000
EBIT 77,116,000
Tax Provision 7,543,000
Depreciation and Amortization 70,748,000
Capital Expenditure -64,441,000
Unlevered Free Cash Flow 53,403,312
Current Assets 826,215,000
Current Cash 209,654,000
Current Liabilities 273,383,000
Current Debt 17,703,000
Non-Cash Working Capital (NCWC) 360,881,000
Change in NCWC -6,185,000
EBIT 77,109,000
Tax Provision 4,930,000
Depreciation and Amortization 66,264,000
Capital Expenditure -68,851,000
Unlevered Free Cash Flow 51,011,109

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