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GGG

Graco Inc. – Pump and Pumping Equipment Manufacturing
Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries.
Analysis Results
Intrinsic Value $45.82
Latest Price $68.37
Relative Value 49% 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 7.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.7%, 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 428 395
2023 461 393
2024 497 391
2025 535 389
2026 577 387
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9310 million. This corresponds to a present value of 5770 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1950 million. Adding in the terminal value gives a total present value of 7720 million.

There are presently 169.0 million outstanding shares, so the intrinsic value per share is 45.82.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,363,621,000
Current Cash 624,302,000
Current Liabilities 506,792,000
Current Debt 118,489,000
Non-Cash Working Capital (NCWC) 351,016,000
Change in NCWC 5,330,000
EBIT 531,323,000
Tax Provision 68,599,000
Depreciation and Amortization 59,325,000
Capital Expenditure -133,566,000
Unlevered Free Cash Flow 390,729,137
Current Assets 1,023,801,000
Current Cash 378,909,000
Current Liabilities 321,389,000
Current Debt 22,183,000
Non-Cash Working Capital (NCWC) 345,686,000
Change in NCWC 52,781,000
EBIT 426,947,000
Tax Provision 44,195,000
Depreciation and Amortization 55,329,000
Capital Expenditure -71,338,000
Unlevered Free Cash Flow 413,355,000
Current Assets 791,468,000
Current Cash 220,973,000
Current Liabilities 285,322,000
Current Debt 7,732,000
Non-Cash Working Capital (NCWC) 292,905,000
Change in NCWC -9,473,000
EBIT 424,456,000
Tax Provision 62,024,000
Depreciation and Amortization 48,911,000
Capital Expenditure -127,953,000
Unlevered Free Cash Flow 271,077,854
Current Assets 723,216,000
Current Cash 132,118,000
Current Liabilities 299,803,000
Current Debt 11,083,000
Non-Cash Working Capital (NCWC) 302,378,000
Change in NCWC 1,962,000
EBIT 436,427,000
Tax Provision 69,712,000
Depreciation and Amortization 47,754,000
Capital Expenditure -53,854,000
Unlevered Free Cash Flow 358,222,015
Current Assets 631,926,000
Current Cash 103,662,000
Current Liabilities 234,426,000
Current Debt 6,578,000
Non-Cash Working Capital (NCWC) 300,416,000
Change in NCWC 18,491,000
EBIT 360,447,000
Tax Provision 94,682,000
Depreciation and Amortization 45,583,000
Capital Expenditure -40,194,000
Unlevered Free Cash Flow 286,002,503
Current Assets 503,362,000
Current Cash 52,365,000
Current Liabilities 177,985,000
Current Debt 8,913,000
Non-Cash Working Capital (NCWC) 281,925,000
Change in NCWC 3,918,000
EBIT 305,899,000
Tax Provision 55,981,000
Depreciation and Amortization 48,290,000
Capital Expenditure -42,113,000
Unlevered Free Cash Flow 138,822,287
Current Assets 509,017,000
Current Cash 52,295,000
Current Liabilities 194,616,000
Current Debt 15,901,000
Non-Cash Working Capital (NCWC) 278,007,000
Change in NCWC 33,387,000
EBIT 302,125,000
Tax Provision 129,000,000
Depreciation and Amortization 44,607,000
Capital Expenditure -41,749,000
Unlevered Free Cash Flow 256,269,604
Current Assets 859,507,000
Current Cash 445,423,000
Current Liabilities 174,480,000
Current Debt 5,016,000
Non-Cash Working Capital (NCWC) 244,620,000
Change in NCWC 53,349,000
EBIT 308,925,000
Tax Provision 89,500,000
Depreciation and Amortization 35,515,000
Capital Expenditure -30,636,000
Unlevered Free Cash Flow 279,399,407
Current Assets 792,593,000
Current Cash 442,053,000
Current Liabilities 168,853,000
Current Debt 9,584,000
Non-Cash Working Capital (NCWC) 191,271,000
Change in NCWC 15,746,000
EBIT 279,769,000
Tax Provision 78,000,000
Depreciation and Amortization 37,316,000
Capital Expenditure -23,319,000
Unlevered Free Cash Flow 233,956,876
Current Assets 776,996,000
Current Cash 457,933,000
Current Liabilities 151,671,000
Current Debt 8,133,000
Non-Cash Working Capital (NCWC) 175,525,000
Change in NCWC 18,329,000
EBIT 224,677,000
Tax Provision 68,200,000
Depreciation and Amortization 38,762,000
Capital Expenditure -18,234,000
Unlevered Free Cash Flow 193,027,151

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