DCF Tool

HXL

Hexcel Corp. – Plastics Material and Resin Manufacturing
Hexcel Corporation is a leading advanced composites company. It develops, manufactures, and markets lightweight, high-performance structural materials including carbon fibers, specialty reinforcements, prepregs, and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core and composite structures for use in commercial aerospace, space and defense, and industrial applications.
Analysis Results
Intrinsic Value $423.47
Latest Price $51.72
Relative Value 88% 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 40.8%.

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 40.8%, 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 0.737 0.681
2023 1.04 0.886
2024 1.46 1.15
2025 2.06 1.5
2026 2.9 1.95
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 47.4 billion. This corresponds to a present value of 29.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.17 billion. Adding in the terminal value gives a total present value of 35.6 billion.

There are presently 84.1 million outstanding shares, so the intrinsic value per share is 423.47.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,232,600,000
Current Cash 255,400,000
Current Liabilities 495,200,000
Current Debt 1,800,000
Non-Cash Working Capital (NCWC) 483,800,000
Change in NCWC 233,400,000
EBIT 103,600,000
Tax Provision 11,800,000
Depreciation and Amortization 276,000,000
Capital Expenditure -55,800,000
Unlevered Free Cash Flow 529,416,363
Current Assets 535,900,000
Current Cash 103,300,000
Current Liabilities 183,100,000
Current Debt 900,000
Non-Cash Working Capital (NCWC) 250,400,000
Change in NCWC -77,000,000
EBIT 12,500,000
Tax Provision -61,000,000
Depreciation and Amortization 140,900,000
Capital Expenditure -50,600,000
Unlevered Free Cash Flow 25,800,000
Current Assets 704,900,000
Current Cash 64,400,000
Current Liabilities 322,600,000
Current Debt 9,500,000
Non-Cash Working Capital (NCWC) 327,400,000
Change in NCWC 1,600,000
EBIT 428,900,000
Tax Provision 76,800,000
Depreciation and Amortization 141,700,000
Capital Expenditure -204,100,000
Unlevered Free Cash Flow 282,185,758
Current Assets 675,800,000
Current Cash 32,700,000
Current Liabilities 326,700,000
Current Debt 9,400,000
Non-Cash Working Capital (NCWC) 325,800,000
Change in NCWC -13,000,000
EBIT 384,500,000
Tax Provision 62,500,000
Depreciation and Amortization 123,100,000
Capital Expenditure -184,100,000
Unlevered Free Cash Flow 239,632,261
Current Assets 656,700,000
Current Cash 60,100,000
Current Liabilities 262,100,000
Current Debt 4,300,000
Non-Cash Working Capital (NCWC) 338,800,000
Change in NCWC 34,600,000
EBIT 353,900,000
Tax Provision 42,500,000
Depreciation and Amortization 104,500,000
Capital Expenditure -278,100,000
Unlevered Free Cash Flow 168,833,384
Current Assets 607,000,000
Current Cash 35,200,000
Current Liabilities 271,900,000
Current Debt 4,300,000
Non-Cash Working Capital (NCWC) 304,200,000
Change in NCWC 14,800,000
EBIT 362,600,000
Tax Provision 90,300,000
Depreciation and Amortization 93,300,000
Capital Expenditure -327,900,000
Unlevered Free Cash Flow 46,526,021
Current Assets 633,800,000
Current Cash 51,800,000
Current Liabilities 292,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 289,400,000
Change in NCWC -12,100,000
EBIT 334,400,000
Tax Provision 83,000,000
Depreciation and Amortization 76,400,000
Capital Expenditure -305,300,000
Unlevered Free Cash Flow 6,719,175
Current Assets 681,700,000
Current Cash 70,900,000
Current Liabilities 310,600,000
Current Debt 1,300,000
Non-Cash Working Capital (NCWC) 301,500,000
Change in NCWC -23,700,000
EBIT 307,200,000
Tax Provision 89,300,000
Depreciation and Amortization 71,200,000
Capital Expenditure -260,100,000
Unlevered Free Cash Flow 2,758,821
Current Assets 656,400,000
Current Cash 65,500,000
Current Liabilities 268,700,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 325,200,000
Change in NCWC 800,000
EBIT 272,200,000
Tax Provision 76,000,000
Depreciation and Amortization 59,300,000
Capital Expenditure -194,900,000
Unlevered Free Cash Flow 59,009,700
Current Assets 575,700,000
Current Cash 32,600,000
Current Liabilities 235,300,000
Current Debt 16,600,000
Non-Cash Working Capital (NCWC) 324,400,000
Change in NCWC 84,500,000
EBIT 235,000,000
Tax Provision 74,100,000
Depreciation and Amortization 57,200,000
Capital Expenditure -263,700,000
Unlevered Free Cash Flow 39,956,795

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