DCF Tool

HRC

Hill-Rom Holdings Inc – Surgical and Medical Instrument Manufacturing
Hillrom Holdings Inc. is a global medical technology leader whose 10,000 employees have a single purpose: enhancing outcomes for patients and their caregivers by Advancing Connected Careā„¢. Around the world, its innovations touch over 7 million patients each day. They help enable earlier diagnosis and treatment, optimize surgical efficiency and accelerate patient recovery while simplifying clinical communication and shifting care closer to home. The company makes these outcomes possible through connected smart beds, patient lifts, patient assessment and monitoring technologies, caregiver collaboration tools, respiratory health devices, advanced operating room equipment and more, delivering actionable, real-time insights at the point of care.
Analysis Results
Intrinsic Value $2,052.56
Latest Price $155.96
Relative Value 92% 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 35.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 35.4%, 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 (billion) Present value (billion)
2022 1.64 1.56
2023 2.22 2.0
2024 3.01 2.58
2025 4.07 3.32
2026 5.52 4.27
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 165 billion. This corresponds to a present value of 122 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 13.7 billion. Adding in the terminal value gives a total present value of 136 billion.

There are presently 66.1 million outstanding shares, so the intrinsic value per share is 2052.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,727,600,000
Current Cash 543,600,000
Current Liabilities 1,982,400,000
Current Debt 471,400,000
Non-Cash Working Capital (NCWC) 673,000,000
Change in NCWC 334,500,000
EBIT 895,200,000
Tax Provision 108,600,000
Depreciation and Amortization 371,600,000
Capital Expenditure -244,200,000
Unlevered Free Cash Flow 1,196,567,107
Current Assets 1,364,900,000
Current Cash 296,500,000
Current Liabilities 952,200,000
Current Debt 222,300,000
Non-Cash Working Capital (NCWC) 338,500,000
Change in NCWC -502,900,000
EBIT 409,200,000
Tax Provision 48,200,000
Depreciation and Amortization 178,800,000
Capital Expenditure -105,900,000
Unlevered Free Cash Flow -93,526,548
Current Assets 1,663,400,000
Current Cash 214,100,000
Current Liabilities 1,268,300,000
Current Debt 660,400,000
Non-Cash Working Capital (NCWC) 841,400,000
Change in NCWC 348,700,000
EBIT 344,500,000
Tax Provision 56,400,000
Depreciation and Amortization 194,800,000
Capital Expenditure -73,400,000
Unlevered Free Cash Flow 721,456,184
Current Assets 1,155,600,000
Current Cash 183,000,000
Current Liabilities 662,400,000
Current Debt 182,500,000
Non-Cash Working Capital (NCWC) 492,700,000
Change in NCWC 28,100,000
EBIT 367,100,000
Tax Provision -55,200,000
Depreciation and Amortization 196,500,000
Capital Expenditure -89,500,000
Unlevered Free Cash Flow 502,200,000
Current Assets 1,166,200,000
Current Cash 231,800,000
Current Liabilities 658,700,000
Current Debt 188,900,000
Non-Cash Working Capital (NCWC) 464,600,000
Change in NCWC 66,900,000
EBIT 310,800,000
Tax Provision 50,700,000
Depreciation and Amortization 102,400,000
Capital Expenditure -97,500,000
Unlevered Free Cash Flow 296,493,114
Current Assets 1,082,100,000
Current Cash 232,200,000
Current Liabilities 662,300,000
Current Debt 210,100,000
Non-Cash Working Capital (NCWC) 397,700,000
Change in NCWC -29,700,000
EBIT 270,200,000
Tax Provision 15,500,000
Depreciation and Amortization 113,100,000
Capital Expenditure -83,300,000
Unlevered Free Cash Flow 240,017,281
Current Assets 1,141,000,000
Current Cash 192,800,000
Current Liabilities 578,800,000
Current Debt 58,000,000
Non-Cash Working Capital (NCWC) 427,400,000
Change in NCWC 62,800,000
EBIT 124,300,000
Tax Provision 18,300,000
Depreciation and Amortization 84,100,000
Capital Expenditure -121,300,000
Unlevered Free Cash Flow 114,958,525
Current Assets 779,300,000
Current Cash 99,300,000
Current Liabilities 442,300,000
Current Debt 126,900,000
Non-Cash Working Capital (NCWC) 364,600,000
Change in NCWC 68,200,000
EBIT 159,700,000
Tax Provision 54,600,000
Depreciation and Amortization 77,600,000
Capital Expenditure -62,700,000
Unlevered Free Cash Flow 167,108,854
Current Assets 688,000,000
Current Cash 127,400,000
Current Liabilities 345,400,000
Current Debt 81,200,000
Non-Cash Working Capital (NCWC) 296,400,000
Change in NCWC -38,200,000
EBIT 160,600,000
Tax Provision 39,000,000
Depreciation and Amortization 116,800,000
Capital Expenditure -65,300,000
Unlevered Free Cash Flow 130,404,166
Current Assets 681,800,000
Current Cash 84,300,000
Current Liabilities 378,100,000
Current Debt 115,200,000
Non-Cash Working Capital (NCWC) 334,600,000
Change in NCWC 1,200,000
EBIT 191,400,000
Tax Provision 42,700,000
Depreciation and Amortization 111,700,000
Capital Expenditure -77,800,000
Unlevered Free Cash Flow 176,513,577

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