DCF Tool

HEI

Heico Corp. – Small Arms Ammunition Manufacturing
HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers.
Analysis Results
Intrinsic Value $1,984.82
Latest Price $143.98
Relative Value 93% undervalued
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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 48.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 48.0%, 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 1.84 1.7
2023 2.72 2.33
2024 4.03 3.18
2025 5.97 4.35
2026 8.83 5.96
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 145 billion. This corresponds to a present value of 90.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.5 billion. Adding in the terminal value gives a total present value of 108 billion.

There are presently 54.5 million outstanding shares, so the intrinsic value per share is 1984.82.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,874,770,000
Current Cash 216,596,000
Current Liabilities 589,760,000
Current Debt 3,030,000
Non-Cash Working Capital (NCWC) 1,071,444,000
Change in NCWC 552,787,000
EBIT 785,800,000
Tax Provision 114,600,000
Depreciation and Amortization 186,038,000
Capital Expenditure -72,366,000
Unlevered Free Cash Flow 1,335,929,302
Current Assets 1,165,625,000
Current Cash 406,852,000
Current Liabilities 241,161,000
Current Debt 1,045,000
Non-Cash Working Capital (NCWC) 518,657,000
Change in NCWC 50,159,000
EBIT 376,648,000
Tax Provision 29,000,000
Depreciation and Amortization 88,561,000
Capital Expenditure -22,940,000
Unlevered Free Cash Flow 462,490,649
Current Assets 813,731,000
Current Cash 57,001,000
Current Liabilities 289,138,000
Current Debt 906,000
Non-Cash Working Capital (NCWC) 468,498,000
Change in NCWC 75,859,000
EBIT 457,097,000
Tax Provision 78,100,000
Depreciation and Amortization 83,497,000
Capital Expenditure -28,938,000
Unlevered Free Cash Flow 505,980,206
Current Assets 733,808,000
Current Cash 59,599,000
Current Liabilities 282,429,000
Current Debt 859,000
Non-Cash Working Capital (NCWC) 392,639,000
Change in NCWC 61,799,000
EBIT 376,245,000
Tax Provision 70,600,000
Depreciation and Amortization 77,191,000
Capital Expenditure -41,871,000
Unlevered Free Cash Flow 398,809,016
Current Assets 631,892,000
Current Cash 52,066,000
Current Liabilities 249,437,000
Current Debt 451,000
Non-Cash Working Capital (NCWC) 330,840,000
Change in NCWC 3,584,000
EBIT 306,658,000
Tax Provision 90,300,000
Depreciation and Amortization 64,823,000
Capital Expenditure -25,998,000
Unlevered Free Cash Flow 256,130,977
Current Assets 584,221,000
Current Cash 42,955,000
Current Liabilities 214,421,000
Current Debt 411,000
Non-Cash Working Capital (NCWC) 327,256,000
Change in NCWC 25,277,000
EBIT 265,345,000
Tax Provision 80,900,000
Depreciation and Amortization 60,277,000
Capital Expenditure -30,863,000
Unlevered Free Cash Flow 236,525,358
Current Assets 503,612,000
Current Cash 33,603,000
Current Liabilities 168,387,000
Current Debt 357,000
Non-Cash Working Capital (NCWC) 301,979,000
Change in NCWC 42,717,000
EBIT 229,656,000
Tax Provision 71,400,000
Depreciation and Amortization 47,907,000
Capital Expenditure -18,249,000
Unlevered Free Cash Flow 229,141,833
Current Assets 431,293,000
Current Cash 20,229,000
Current Liabilities 152,220,000
Current Debt 418,000
Non-Cash Working Capital (NCWC) 259,262,000
Change in NCWC -6,122,000
EBIT 203,388,000
Tax Provision 59,800,000
Depreciation and Amortization 47,757,000
Capital Expenditure -16,410,000
Unlevered Free Cash Flow 167,362,660
Current Assets 441,472,000
Current Cash 15,499,000
Current Liabilities 161,286,000
Current Debt 697,000
Non-Cash Working Capital (NCWC) 265,384,000
Change in NCWC 49,812,000
EBIT 183,590,000
Tax Provision 56,200,000
Depreciation and Amortization 36,790,000
Capital Expenditure -18,328,000
Unlevered Free Cash Flow 194,784,441
Current Assets 367,911,000
Current Cash 21,451,000
Current Liabilities 131,514,000
Current Debt 626,000
Non-Cash Working Capital (NCWC) 215,572,000
Change in NCWC 39,489,000
EBIT 163,294,000
Tax Provision 54,500,000
Depreciation and Amortization 30,656,000
Capital Expenditure -15,262,000
Unlevered Free Cash Flow 162,960,477

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