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Generac Holdings Inc – Motor and Generator Manufacturing
founded in 1959, generac has earned a reputation as the company home and business owners turn to when the power goes out. the first to engineer affordable home standby generators, along with the first engine developed specifically for the rigors of generator use, we now sell more home standby generators than all of our competitors combined. we then revolutionized the commercial market with the first cost effective product line meeting the needs of small and mid-sized businesses. unlike other generator manufacturers, power generation is our sole focus, with the widest range of power products in the marketplace including portable, rv, residential, commercial and industrial generators. at generac, we protect the things that power your life by providing quality, affordable power solutions. we believe generac‘s continued success will come from our dedication to growth and our core philosophy of ensuring our customers’ peace of mind by delivering a superior product and ownership experience.
Analysis Results
Intrinsic Value $512.79
Latest Price $106.52
Relative Value 79% 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 33.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.9%, 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 1.33 1.19
2024 1.79 1.43
2025 2.39 1.71
2026 3.2 2.05
2027 4.28 2.46
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 44.9 billion. This corresponds to a present value of 23.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.85 billion. Adding in the terminal value gives a total present value of 31.9 billion.

There are presently 62.2 million outstanding shares, so the intrinsic value per share is 512.79.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,182,348,000
Current Cash 132,723,000
Current Liabilities 992,044,000
Current Debt 61,723,000
Non-Cash Working Capital (NCWC) 1,119,304,000
Change in NCWC 496,121,000
EBIT 567,789,000
Tax Provision 99,596,000
Depreciation and Amortization 156,141,000
Capital Expenditure -86,188,000
Unlevered Free Cash Flow 1,022,647,081
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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