DCF Tool

GOLF

Acushnet Holdings Corp – Sporting and Athletic Goods Manufacturing
Acushnet Holdings is the global leader in the design, development, manufacture and distribution of performance-driven golf products, which are widely recognized for their quality excellence. Driven by our focus on dedicated and discerning golfers and the golf shops that serve them,we believe we are the most authentic and enduring company in the golf industry. Our mission - to be the performance and quality leader in every golf product category in which we compete -has remained consistent since we entered the golf ball business in 1932. Today, we are the steward of two of the most revered brands in golf - Titleist, one of golf's leading performance equipment brands, and FootJoy, one of golf's leading performance wear brands.
Analysis Results
Intrinsic Value $3.70
Latest Price $47.48
Relative Value 1182% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 -29.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -29.6%, 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 53.0 49.0
2023 37.3 31.9
2024 26.3 20.8
2025 18.5 13.5
2026 13.0 8.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 217 million. This corresponds to a present value of 136 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 124 million. Adding in the terminal value gives a total present value of 260 million.

There are presently 70.2 million outstanding shares, so the intrinsic value per share is 3.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 969,176,000
Current Cash 281,677,000
Current Liabilities 483,024,000
Current Debt 17,616,000
Non-Cash Working Capital (NCWC) 222,091,000
Change in NCWC -90,895,000
EBIT 259,812,000
Tax Provision 63,583,000
Depreciation and Amortization 41,243,000
Capital Expenditure -37,597,000
Unlevered Free Cash Flow 105,904,028
Current Assets 799,807,000
Current Cash 149,452,000
Current Liabilities 357,679,000
Current Debt 20,310,000
Non-Cash Working Capital (NCWC) 312,986,000
Change in NCWC -110,153,000
EBIT 158,662,000
Tax Provision 13,038,000
Depreciation and Amortization 45,429,000
Capital Expenditure -24,675,000
Unlevered Free Cash Flow 50,964,428
Current Assets 742,818,000
Current Cash 32,184,000
Current Liabilities 359,118,000
Current Debt 71,623,000
Non-Cash Working Capital (NCWC) 423,139,000
Change in NCWC 46,474,000
EBIT 185,653,000
Tax Provision 40,600,000
Depreciation and Amortization 43,002,000
Capital Expenditure -32,956,000
Unlevered Free Cash Flow 196,536,746
Current Assets 664,001,000
Current Cash 29,014,000
Current Liabilities 294,867,000
Current Debt 36,545,000
Non-Cash Working Capital (NCWC) 376,665,000
Change in NCWC -5,289,000
EBIT 172,335,000
Tax Provision 47,232,000
Depreciation and Amortization 40,496,000
Capital Expenditure -32,801,000
Unlevered Free Cash Flow 120,585,909
Current Assets 687,076,000
Current Cash 45,422,000
Current Liabilities 306,783,000
Current Debt 47,083,000
Non-Cash Working Capital (NCWC) 381,954,000
Change in NCWC 194,344,000
EBIT 166,308,000
Tax Provision 55,056,000
Depreciation and Amortization 40,871,000
Capital Expenditure -18,845,000
Unlevered Free Cash Flow 322,310,814

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.