DCF Tool

HLF

Herbalife Nutrition Ltd – All Other Miscellaneous Chemical Product and Preparation Manufacturing
Herbalife Nutrition is a global company that has been changing people's lives with great nutrition products and a proven business opportunity for its independent distributors since 1980. The Company offers high-quality, science-backed products, sold in over 90 countries by entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company's global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.
Analysis Results
Intrinsic Value $97.12
Latest Price $17.69
Relative Value 82% undervalued
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 1.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.3%, 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 396 374
2023 401 358
2024 406 342
2025 412 328
2026 417 313
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11000 million. This corresponds to a present value of 7790 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1720 million. Adding in the terminal value gives a total present value of 9510 million.

There are presently 97.9 million outstanding shares, so the intrinsic value per share is 97.12.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,431,800,000
Current Cash 601,500,000
Current Liabilities 1,080,400,000
Current Debt 29,400,000
Non-Cash Working Capital (NCWC) -220,700,000
Change in NCWC 153,300,000
EBIT 717,700,000
Tax Provision 113,600,000
Depreciation and Amortization 107,600,000
Capital Expenditure -151,400,000
Unlevered Free Cash Flow 681,817,118
Current Assets 1,775,800,000
Current Cash 1,045,400,000
Current Liabilities 1,127,300,000
Current Debt 22,900,000
Non-Cash Working Capital (NCWC) -374,000,000
Change in NCWC -82,500,000
EBIT 626,100,000
Tax Provision 143,800,000
Depreciation and Amortization 100,300,000
Capital Expenditure -112,000,000
Unlevered Free Cash Flow 357,552,246
Current Assets 1,488,200,000
Current Cash 839,400,000
Current Liabilities 964,400,000
Current Debt 24,100,000
Non-Cash Working Capital (NCWC) -291,500,000
Change in NCWC 12,300,000
EBIT 530,600,000
Tax Provision 140,400,000
Depreciation and Amortization 97,700,000
Capital Expenditure -106,100,000
Unlevered Free Cash Flow 369,466,238
Current Assets 1,805,000,000
Current Cash 1,198,900,000
Current Liabilities 1,588,800,000
Current Debt 678,900,000
Non-Cash Working Capital (NCWC) -303,800,000
Change in NCWC -80,900,000
EBIT 653,300,000
Tax Provision 167,600,000
Depreciation and Amortization 100,400,000
Capital Expenditure 0
Unlevered Free Cash Flow 436,925,204
Current Assets 1,860,300,000
Current Cash 1,278,800,000
Current Liabilities 906,800,000
Current Debt 102,400,000
Non-Cash Working Capital (NCWC) -222,900,000
Change in NCWC -59,400,000
EBIT 566,300,000
Tax Provision 257,300,000
Depreciation and Amortization 99,800,000
Capital Expenditure -95,500,000
Unlevered Free Cash Flow 201,970,394
Current Assets 1,462,500,000
Current Cash 844,000,000
Current Liabilities 791,500,000
Current Debt 9,500,000
Non-Cash Working Capital (NCWC) -163,500,000
Change in NCWC -45,100,000
EBIT 394,300,000
Tax Provision 104,700,000
Depreciation and Amortization 98,300,000
Capital Expenditure -143,400,000
Unlevered Free Cash Flow 190,902,275
Current Assets 1,566,300,000
Current Cash 889,800,000
Current Liabilities 1,024,400,000
Current Debt 229,500,000
Non-Cash Working Capital (NCWC) -118,400,000
Change in NCWC -91,600,000
EBIT 583,600,000
Tax Provision 147,300,000
Depreciation and Amortization 98,000,000
Capital Expenditure -79,000,000
Unlevered Free Cash Flow 334,264,226
Current Assets 1,393,400,000
Current Cash 645,400,000
Current Liabilities 874,800,000
Current Debt 100,000,000
Non-Cash Working Capital (NCWC) -26,800,000
Change in NCWC 143,982,000
EBIT 513,500,000
Tax Provision 112,600,000
Depreciation and Amortization 93,200,000
Capital Expenditure -173,700,000
Unlevered Free Cash Flow 439,739,892
Current Assets 1,643,120,000
Current Cash 972,974,000
Current Liabilities 922,178,000
Current Debt 81,250,000
Non-Cash Working Capital (NCWC) -170,782,000
Change in NCWC -115,235,000
EBIT 735,277,000
Tax Provision 189,192,000
Depreciation and Amortization 84,739,000
Capital Expenditure -146,958,000
Unlevered Free Cash Flow 363,731,711
Current Assets 984,047,000
Current Cash 333,534,000
Current Liabilities 762,362,000
Current Debt 56,302,000
Non-Cash Working Capital (NCWC) -55,547,000
Change in NCWC -18,444,000
EBIT 661,447,000
Tax Provision 186,944,000
Depreciation and Amortization 74,384,000
Capital Expenditure -121,524,000
Unlevered Free Cash Flow 405,891,563

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.