DCF Tool

HUBB

Hubbell Inc. – Current-Carrying Wiring Device Manufacturing
Hubbell Incorporated is an international manufacturer of high quality, reliable electrical and utility solutions for a broad range of customer and end market applications. With 2020 revenues of $4.2 billion, Hubbell Incorporated operates manufacturing facilities in the United States and around the world. The corporate headquarters is located in Shelton, CT.
Analysis Results
Intrinsic Value $234.62
Latest Price $186.00
Relative Value 21% 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 4.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.7%, 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 0.564 0.529
2023 0.591 0.519
2024 0.619 0.51
2025 0.648 0.5
2026 0.679 0.491
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14.8 billion. This corresponds to a present value of 10.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.55 billion. Adding in the terminal value gives a total present value of 12.6 billion.

There are presently 53.7 million outstanding shares, so the intrinsic value per share is 234.62.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,758,600,000
Current Cash 591,200,000
Current Liabilities 2,130,400,000
Current Debt 19,400,000
Non-Cash Working Capital (NCWC) 1,056,400,000
Change in NCWC 532,800,000
EBIT 1,064,600,000
Tax Provision 176,400,000
Depreciation and Amortization 298,200,000
Capital Expenditure -180,400,000
Unlevered Free Cash Flow 1,510,763,422
Current Assets 1,587,600,000
Current Cash 268,900,000
Current Liabilities 948,200,000
Current Debt 153,100,000
Non-Cash Working Capital (NCWC) 523,600,000
Change in NCWC -74,900,000
EBIT 533,000,000
Tax Provision 97,500,000
Depreciation and Amortization 157,600,000
Capital Expenditure -88,400,000
Unlevered Free Cash Flow 412,707,938
Current Assets 1,574,200,000
Current Cash 196,200,000
Current Liabilities 844,900,000
Current Debt 65,400,000
Non-Cash Working Capital (NCWC) 598,500,000
Change in NCWC -63,800,000
EBIT 596,600,000
Tax Provision 113,100,000
Depreciation and Amortization 151,000,000
Capital Expenditure -93,900,000
Unlevered Free Cash Flow 460,264,149
Current Assets 1,643,700,000
Current Cash 198,200,000
Current Liabilities 839,300,000
Current Debt 56,100,000
Non-Cash Working Capital (NCWC) 662,300,000
Change in NCWC 85,700,000
EBIT 556,900,000
Tax Provision 100,900,000
Depreciation and Amortization 148,400,000
Capital Expenditure -96,200,000
Unlevered Free Cash Flow 574,476,209
Current Assets 1,604,100,000
Current Cash 389,500,000
Current Liabilities 706,100,000
Current Debt 68,100,000
Non-Cash Working Capital (NCWC) 576,600,000
Change in NCWC 60,500,000
EBIT 503,700,000
Tax Provision 193,200,000
Depreciation and Amortization 99,800,000
Capital Expenditure -79,700,000
Unlevered Free Cash Flow 364,677,251
Current Assets 1,551,300,000
Current Cash 448,800,000
Current Liabilities 589,600,000
Current Debt 3,200,000
Non-Cash Working Capital (NCWC) 516,100,000
Change in NCWC 38,900,000
EBIT 477,800,000
Tax Provision 132,600,000
Depreciation and Amortization 92,300,000
Capital Expenditure -67,200,000
Unlevered Free Cash Flow 394,596,747
Current Assets 1,387,800,000
Current Cash 355,700,000
Current Liabilities 603,100,000
Current Debt 48,200,000
Non-Cash Working Capital (NCWC) 477,200,000
Change in NCWC 7,300,000
EBIT 474,600,000
Tax Provision 136,500,000
Depreciation and Amortization 85,200,000
Capital Expenditure -77,100,000
Unlevered Free Cash Flow 335,239,130
Current Assets 1,629,400,000
Current Cash 661,700,000
Current Liabilities 499,200,000
Current Debt 1,400,000
Non-Cash Working Capital (NCWC) 469,900,000
Change in NCWC 55,000,000
EBIT 517,400,000
Tax Provision 158,300,000
Depreciation and Amortization 79,200,000
Capital Expenditure -60,300,000
Unlevered Free Cash Flow 422,598,825
Current Assets 1,632,400,000
Current Cash 750,800,000
Current Liabilities 467,000,000
Current Debt 300,000
Non-Cash Working Capital (NCWC) 414,900,000
Change in NCWC 59,900,000
EBIT 507,600,000
Tax Provision 144,000,000
Depreciation and Amortization 70,600,000
Capital Expenditure -58,800,000
Unlevered Free Cash Flow 425,027,311
Current Assets 1,456,200,000
Current Cash 653,800,000
Current Liabilities 447,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 355,000,000
Change in NCWC 73,100,000
EBIT 471,800,000
Tax Provision 139,700,000
Depreciation and Amortization 66,800,000
Capital Expenditure -49,100,000
Unlevered Free Cash Flow 413,413,807

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