DCF Tool

GMS

GMS Inc – Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers
Celebrating the 50th anniversary of its founding in 1971, GMS operates a network of more than 265 distribution centers across the United States and Canada. GMS's extensive product offering of wallboard, suspended ceilings systems, or ceilings, and complementary construction products is designed to provide a comprehensive one-stop-shop for its core customer, the interior contractor who installs these products in commercial and residential buildings.
Analysis Results
Intrinsic Value $987.19
Latest Price $54.99
Relative Value 94% 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 42.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 42.5%, 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 0.858 0.792
2024 1.22 1.04
2025 1.74 1.37
2026 2.49 1.8
2027 3.54 2.36
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 56.1 billion. This corresponds to a present value of 34.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.36 billion. Adding in the terminal value gives a total present value of 41.9 billion.

There are presently 42.4 million outstanding shares, so the intrinsic value per share is 987.19.

Financial Statements

The following data was to determine the past cash flows.

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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