DCF Tool

GRA

W.R. Grace & Co. – All Other Miscellaneous Chemical Product and Preparation Manufacturing
Built on talent, technology, and trust, Grace is a leading global specialty chemical company. The company's two industry-leading business segments-Catalysts Technologies and Materials Technologies-provide innovative products, technologies, and services that enhance the products and processes of its customers around the world. With approximately 4,000 employees, Grace operates and/or sells to customers in over 60 countries.
Analysis Results
Intrinsic Value $15.31
Latest Price $69.99
Relative Value 357% overvalued
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Cash Flow (Millions)
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 -20.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -20.5%, 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 (million) Present value (million)
2021 75.7 73.8
2022 60.2 57.2
2023 47.9 44.3
2024 38.1 34.4
2025 30.3 26.6
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 910 million. This corresponds to a present value of 778 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 236 million. Adding in the terminal value gives a total present value of 1010 million.

There are presently 66.3 million outstanding shares, so the intrinsic value per share is 15.31.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 875,300,000
Current Cash 304,500,000
Current Liabilities 559,300,000
Current Debt 15,300,000
Non-Cash Working Capital (NCWC) 26,800,000
Change in NCWC -103,600,000
EBIT 241,800,000
Tax Provision 2,200,000
Depreciation and Amortization 105,000,000
Capital Expenditure -155,500,000
Unlevered Free Cash Flow 85,500,000
Current Assets 1,134,900,000
Current Cash 282,500,000
Current Liabilities 745,100,000
Current Debt 23,100,000
Non-Cash Working Capital (NCWC) 130,400,000
Change in NCWC -34,300,000
EBIT 354,500,000
Tax Provision 56,800,000
Depreciation and Amortization 100,300,000
Capital Expenditure -194,100,000
Unlevered Free Cash Flow 116,669,209
Current Assets 857,300,000
Current Cash 200,500,000
Current Liabilities 514,400,000
Current Debt 22,300,000
Non-Cash Working Capital (NCWC) 164,700,000
Change in NCWC 17,000,000
EBIT 355,000,000
Tax Provision 78,100,000
Depreciation and Amortization 100,800,000
Capital Expenditure -216,300,000
Unlevered Free Cash Flow 143,288,485
Current Assets 728,600,000
Current Cash 152,800,000
Current Liabilities 448,200,000
Current Debt 20,100,000
Non-Cash Working Capital (NCWC) 147,700,000
Change in NCWC -12,200,000
EBIT 308,700,000
Tax Provision 200,500,000
Depreciation and Amortization 111,500,000
Capital Expenditure -125,200,000
Unlevered Free Cash Flow -10,677,240
Current Assets 654,800,000
Current Cash 90,600,000
Current Liabilities 480,800,000
Current Debt 76,500,000
Non-Cash Working Capital (NCWC) 159,900,000
Change in NCWC -71,900,000
EBIT 298,900,000
Tax Provision 59,000,000
Depreciation and Amortization 100,300,000
Capital Expenditure -116,900,000
Unlevered Free Cash Flow 104,164,457
Current Assets 1,184,500,000
Current Cash 329,900,000
Current Liabilities 707,400,000
Current Debt 84,600,000
Non-Cash Working Capital (NCWC) 231,800,000
Change in NCWC 183,700,000
EBIT 537,500,000
Tax Provision 164,700,000
Depreciation and Amortization 131,500,000
Capital Expenditure -154,800,000
Unlevered Free Cash Flow 411,962,500
Current Assets 1,690,900,000
Current Cash 557,500,000
Current Liabilities 1,182,100,000
Current Debt 96,800,000
Non-Cash Working Capital (NCWC) 48,100,000
Change in NCWC -727,000,000
EBIT 454,800,000
Tax Provision 57,000,000
Depreciation and Amortization 137,100,000
Capital Expenditure -169,800,000
Unlevered Free Cash Flow -382,445,916
Current Assets 2,294,400,000
Current Cash 964,800,000
Current Liabilities 635,600,000
Current Debt 81,100,000
Non-Cash Working Capital (NCWC) 775,100,000
Change in NCWC 231,100,000
EBIT 585,900,000
Tax Provision 102,900,000
Depreciation and Amortization 123,100,000
Capital Expenditure -156,200,000
Unlevered Free Cash Flow 616,708,901
Current Assets 2,440,200,000
Current Cash 1,336,900,000
Current Liabilities 646,300,000
Current Debt 87,000,000
Non-Cash Working Capital (NCWC) 544,000,000
Change in NCWC 17,500,000
EBIT 508,000,000
Tax Provision -37,300,000
Depreciation and Amortization 119,000,000
Capital Expenditure -138,500,000
Unlevered Free Cash Flow 506,000,000

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