DCF Tool


GMS Inc – Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers
gms is the leading north american distributor of gypsum wallboard, acoustical ceiling products and other specialty building materials. gms operates in 34 states, through a network of 37 subsidiary partners and over 150 distribution centers nationwide, from alaska to florida. when gms opened their doors in 1971, customer service was and continues to be the cornerstone of everything the company does. in total, gms and its subsidiary partners distribute over 10,000 unique products from the industry’s leading manufacturers, all across the nation. in addition to wallboard and acoustical products, gms supplies a comprehensive inventory of other building materials, including frp boards, metal framing, insulation, exterior insulation finish systems, ready-mix joint compound, tools, and various other related interior construction products.
Analysis Results
Intrinsic Value $941.93
Latest Price $70.93
Relative Value 92% undervalued
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Cash Flow (Billions)
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 23.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.1%, 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 (billion) Present value (billion)
2024 0.636 0.609
2025 0.783 0.718
2026 0.964 0.847
2027 1.19 1.0
2028 1.46 1.18
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 43.9 billion. This corresponds to a present value of 33.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.35 billion. Adding in the terminal value gives a total present value of 38.2 billion.

There are presently 40.6 million outstanding shares, so the intrinsic value per share is 941.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,549,523,000
Current Cash 164,745,000
Current Liabilities 706,281,000
Current Debt 54,035,000
Non-Cash Working Capital (NCWC) 732,532,000
Change in NCWC 52,914,000
EBIT 505,211,000
Tax Provision 114,512,000
Depreciation and Amortization 126,907,000
Capital Expenditure -52,672,000
Unlevered Free Cash Flow 503,081,040
Current Assets 1,423,127,000
Current Cash 101,916,000
Current Liabilities 689,198,000
Current Debt 47,605,000
Non-Cash Working Capital (NCWC) 679,618,000
Change in NCWC 260,861,000
EBIT 418,918,000
Tax Provision 91,377,000
Depreciation and Amortization 119,232,000
Capital Expenditure -41,082,000
Unlevered Free Cash Flow 653,001,707
Current Assets 1,102,252,000
Current Cash 167,012,000
Current Liabilities 562,501,000
Current Debt 46,018,000
Non-Cash Working Capital (NCWC) 418,757,000
Change in NCWC 76,388,000
EBIT 190,949,000
Tax Provision 31,534,000
Depreciation and Amortization 108,125,000
Capital Expenditure -29,873,000
Unlevered Free Cash Flow 301,667,415
Current Assets 930,950,000
Current Cash 210,909,000
Current Liabilities 427,873,000
Current Debt 50,201,000
Non-Cash Working Capital (NCWC) 342,369,000
Change in NCWC -96,142,000
EBIT 162,600,000
Tax Provision 22,944,000
Depreciation and Amortization 116,533,000
Capital Expenditure -25,193,000
Unlevered Free Cash Flow 77,264,931
Current Assets 802,306,000
Current Cash 47,338,000
Current Liabilities 358,575,000
Current Debt 42,118,000
Non-Cash Working Capital (NCWC) 438,511,000
Change in NCWC 58,749,000
EBIT 147,200,000
Tax Provision 14,039,000
Depreciation and Amortization 117,459,000
Capital Expenditure -18,770,000
Unlevered Free Cash Flow 275,133,269
Current Assets 633,836,000
Current Cash 36,437,000
Current Liabilities 233,921,000
Current Debt 16,284,000
Non-Cash Working Capital (NCWC) 379,762,000
Change in NCWC 38,109,000
EBIT 119,169,000
Tax Provision 20,883,000
Depreciation and Amortization 65,530,000
Capital Expenditure -23,741,000
Unlevered Free Cash Flow 169,389,152
Current Assets 555,186,000
Current Cash 14,561,000
Current Liabilities 210,502,000
Current Debt 11,530,000
Non-Cash Working Capital (NCWC) 341,653,000
Change in NCWC 63,029,000
EBIT 104,253,000
Tax Provision 22,654,000
Depreciation and Amortization 69,240,000
Capital Expenditure -11,083,000
Unlevered Free Cash Flow 192,426,035

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