DCF Tool

HBB

Hamilton Beach Brands Holding Co – Audio and Video Equipment Manufacturing
hamilton beach brands, inc. is a leading designer, marketer and distributor of small electric household appliances, specialty food processing and food preservation equipment, as well as commercial products for restaurants, bars and hotels. hamilton beach and weston brands products can be found in households and business throughout the world. hamilton beach brands, inc. is a wholly-owned subsidiary of nacco industries, inc. (nyse: nc), and is headquartered in richmond, virginia. information on innovative hamilton beach®, proctor silex®, trueair®, hamilton beach® commercial and weston brands, products can be found online at www.hamiltonbeach.com, www.proctorsilex.com,www.westonproducts.com and www.commercial.hamiltonbeach.com. our vision to be the leading supplier of small appliances. our mission profitable growth from innovative solutions that improve everyday living. our values: the customer consistently meet or exceed the needs of our internal and external customers. peop
Analysis Results
Intrinsic Value $227.67
Latest Price $19.00
Relative Value 92% undervalued
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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 8.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.4%, 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)
2023 62.8 60.2
2024 68.0 62.7
2025 73.7 65.2
2026 79.9 67.9
2027 86.6 70.6
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 2600 million. This corresponds to a present value of 2030 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 327 million. Adding in the terminal value gives a total present value of 2360 million.

There are presently 10.4 million outstanding shares, so the intrinsic value per share is 227.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 284,744,000
Current Cash 928,000
Current Liabilities 101,568,000
Current Debt 0
Non-Cash Working Capital (NCWC) 182,248,000
Change in NCWC 29,189,000
EBIT 38,794,000
Tax Provision 7,162,000
Depreciation and Amortization 4,883,000
Capital Expenditure -2,279,000
Unlevered Free Cash Flow 62,019,278
Current Assets 318,360,000
Current Cash 1,125,000
Current Liabilities 164,176,000
Current Debt 0
Non-Cash Working Capital (NCWC) 153,059,000
Change in NCWC 18,252,000
EBIT 31,539,000
Tax Provision 7,651,000
Depreciation and Amortization 4,913,000
Capital Expenditure -11,844,000
Unlevered Free Cash Flow 34,526,785
Current Assets 336,292,000
Current Cash 2,415,000
Current Liabilities 199,070,000
Current Debt 0
Non-Cash Working Capital (NCWC) 134,807,000
Change in NCWC 77,717,000
EBIT 37,415,000
Tax Provision 9,665,000
Depreciation and Amortization 3,907,000
Capital Expenditure -3,312,000
Unlevered Free Cash Flow 105,006,735
Current Assets 237,057,000
Current Cash 2,142,000
Current Liabilities 201,322,000
Current Debt 23,497,000
Non-Cash Working Capital (NCWC) 57,090,000
Change in NCWC -19,430,000
EBIT 26,794,000
Tax Provision 9,084,000
Depreciation and Amortization 4,002,000
Capital Expenditure -4,122,000
Unlevered Free Cash Flow -2,823,282
Current Assets 278,149,000
Current Cash 6,352,000
Current Liabilities 206,901,000
Current Debt 11,624,000
Non-Cash Working Capital (NCWC) 76,520,000
Change in NCWC 18,441,000
EBIT 32,319,000
Tax Provision 6,245,000
Depreciation and Amortization 5,309,000
Capital Expenditure -8,076,000
Unlevered Free Cash Flow 40,792,166

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