DCF Tool

GNRC

Generac Holdings Inc – Motor and Generator Manufacturing
Founded in 1959, Generac is a leading designer and manufacturer of energy technology solutions and other power products. As an industry leader serving residential, light commercial, and industrial markets, Generac's products and solutions are available globally through a broad network of independent dealers, distributors, retailers, e-commerce partners, wholesalers and equipment rental companies, as well as sold direct to certain end user customers.
Analysis Results
Intrinsic Value $128.43
Latest Price $178.14
Relative Value 39% overvalued
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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 16.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 12.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.3%, 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 0.586 0.522
2023 0.681 0.541
2024 0.792 0.561
2025 0.922 0.582
2026 1.07 0.603
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10.7 billion. This corresponds to a present value of 5.39 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.81 billion. Adding in the terminal value gives a total present value of 8.2 billion.

There are presently 63.8 million outstanding shares, so the intrinsic value per share is 128.43.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,848,464,000
Current Cash 147,339,000
Current Liabilities 1,155,907,000
Current Debt 77,965,000
Non-Cash Working Capital (NCWC) 623,183,000
Change in NCWC 206,673,000
EBIT 742,601,000
Tax Provision 134,957,000
Depreciation and Amortization 92,041,000
Capital Expenditure -109,992,000
Unlevered Free Cash Flow 786,398,292
Current Assets 1,669,733,000
Current Cash 655,128,000
Current Liabilities 641,524,000
Current Debt 43,429,000
Non-Cash Working Capital (NCWC) 416,510,000
Change in NCWC -20,469,000
EBIT 479,106,000
Tax Provision 98,973,000
Depreciation and Amortization 68,773,000
Capital Expenditure -62,128,000
Unlevered Free Cash Flow 359,007,874
Current Assets 1,195,829,000
Current Cash 322,883,000
Current Liabilities 497,064,000
Current Debt 61,097,000
Non-Cash Working Capital (NCWC) 436,979,000
Change in NCWC 53,838,000
EBIT 372,163,000
Tax Provision 67,299,000
Depreciation and Amortization 60,909,000
Capital Expenditure -60,802,000
Unlevered Free Cash Flow 347,742,389
Current Assets 1,120,769,000
Current Cash 224,482,000
Current Liabilities 560,706,000
Current Debt 47,560,000
Non-Cash Working Capital (NCWC) 383,141,000
Change in NCWC 69,755,000
EBIT 357,181,000
Tax Provision 69,856,000
Depreciation and Amortization 47,408,000
Capital Expenditure -47,601,000
Unlevered Free Cash Flow 346,533,546
Current Assets 818,556,000
Current Cash 138,472,000
Current Liabilities 388,872,000
Current Debt 22,174,000
Non-Cash Working Capital (NCWC) 313,386,000
Change in NCWC -7,075,000
EBIT 251,064,000
Tax Provision 43,553,000
Depreciation and Amortization 51,988,000
Capital Expenditure -33,261,000
Unlevered Free Cash Flow 209,295,230
Current Assets 683,509,000
Current Cash 67,272,000
Current Liabilities 341,939,000
Current Debt 46,163,000
Non-Cash Working Capital (NCWC) 320,461,000
Change in NCWC -21,081,000
EBIT 204,617,000
Tax Provision 57,570,000
Depreciation and Amortization 54,418,000
Capital Expenditure -30,467,000
Unlevered Free Cash Flow 132,159,911
Current Assets 661,372,000
Current Cash 115,857,000
Current Liabilities 213,224,000
Current Debt 9,251,000
Non-Cash Working Capital (NCWC) 341,542,000
Change in NCWC 35,431,000
EBIT 220,248,000
Tax Provision 45,236,000
Depreciation and Amortization 40,333,000
Capital Expenditure -30,651,000
Unlevered Free Cash Flow 184,348,676
Current Assets 730,478,000
Current Cash 189,761,000
Current Liabilities 240,522,000
Current Debt 5,916,000
Non-Cash Working Capital (NCWC) 306,111,000
Change in NCWC 30,878,000
EBIT 288,498,000
Tax Provision 83,749,000
Depreciation and Amortization 34,730,000
Capital Expenditure -34,689,000
Unlevered Free Cash Flow 225,899,303
Current Assets 654,179,000
Current Cash 150,147,000
Current Liabilities 250,845,000
Current Debt 22,046,000
Non-Cash Working Capital (NCWC) 275,233,000
Change in NCWC 60,762,000
EBIT 351,465,000
Tax Provision 104,177,000
Depreciation and Amortization 36,774,000
Capital Expenditure -30,770,000
Unlevered Free Cash Flow 286,862,261
Current Assets 522,553,000
Current Cash 108,023,000
Current Liabilities 294,859,000
Current Debt 94,800,000
Non-Cash Working Capital (NCWC) 214,471,000
Change in NCWC 66,848,000
EBIT 223,555,000
Tax Provision 63,129,000
Depreciation and Amortization 54,160,000
Capital Expenditure -22,392,000
Unlevered Free Cash Flow 231,907,980

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