DCF Tool

IBP

Installed Building Products Inc – Plumbing, Heating, and Air-Conditioning Contractors
Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects from its national network of over 190 branch locations.
Analysis Results
Intrinsic Value $790.68
Latest Price $110.14
Relative Value 86% 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 39.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 39.3%, 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 (billion) Present value (billion)
2023 0.568 0.52
2024 0.792 0.664
2025 1.1 0.847
2026 1.54 1.08
2027 2.14 1.38
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 30.3 billion. This corresponds to a present value of 17.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.49 billion. Adding in the terminal value gives a total present value of 22.4 billion.

There are presently 28.3 million outstanding shares, so the intrinsic value per share is 790.68.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 884,411,000
Current Cash 229,627,000
Current Liabilities 328,061,000
Current Debt 33,491,000
Non-Cash Working Capital (NCWC) 360,214,000
Change in NCWC 109,366,000
EBIT 329,302,000
Tax Provision 79,879,000
Depreciation and Amortization 117,677,000
Capital Expenditure -45,646,000
Unlevered Free Cash Flow 423,973,950
Current Assets 859,316,000
Current Cash 333,485,000
Current Liabilities 307,569,000
Current Debt 32,586,000
Non-Cash Working Capital (NCWC) 250,848,000
Change in NCWC 69,472,000
EBIT 187,880,000
Tax Provision 36,712,000
Depreciation and Amortization 102,899,000
Capital Expenditure -36,979,000
Unlevered Free Cash Flow 278,908,272
Current Assets 623,943,000
Current Cash 231,520,000
Current Liabilities 236,475,000
Current Debt 25,428,000
Non-Cash Working Capital (NCWC) 181,376,000
Change in NCWC 2,515,000
EBIT 161,867,000
Tax Provision 33,938,000
Depreciation and Amortization 87,996,000
Capital Expenditure -33,587,000
Unlevered Free Cash Flow 176,912,909
Current Assets 581,949,000
Current Cash 215,850,000
Current Liabilities 214,149,000
Current Debt 26,911,000
Non-Cash Working Capital (NCWC) 178,861,000
Change in NCWC 22,056,000
EBIT 121,160,000
Tax Provision 24,446,000
Depreciation and Amortization 79,063,000
Capital Expenditure -50,167,000
Unlevered Free Cash Flow 140,128,010
Current Assets 411,545,000
Current Cash 100,502,000
Current Liabilities 181,686,000
Current Debt 27,448,000
Non-Cash Working Capital (NCWC) 156,805,000
Change in NCWC 31,916,000
EBIT 93,217,000
Tax Provision 17,438,000
Depreciation and Amortization 58,725,000
Capital Expenditure -35,232,000
Unlevered Free Cash Flow 126,107,533
Current Assets 354,942,000
Current Cash 92,563,000
Current Liabilities 159,806,000
Current Debt 22,316,000
Non-Cash Working Capital (NCWC) 124,889,000
Change in NCWC 52,964,000
EBIT 74,266,000
Tax Provision 14,680,000
Depreciation and Amortization 55,142,000
Capital Expenditure -31,668,000
Unlevered Free Cash Flow 131,172,920
Current Assets 192,391,000
Current Cash 14,482,000
Current Liabilities 130,105,000
Current Debt 24,121,000
Non-Cash Working Capital (NCWC) 71,925,000
Change in NCWC 7,501,000
EBIT 66,050,000
Tax Provision 21,174,000
Depreciation and Amortization 34,830,000
Capital Expenditure -27,013,000
Unlevered Free Cash Flow 57,906,454
Current Assets 150,232,000
Current Cash 6,818,000
Current Liabilities 97,422,000
Current Debt 18,432,000
Non-Cash Working Capital (NCWC) 64,424,000
Change in NCWC 21,293,000
EBIT 44,952,000
Tax Provision 15,413,000
Depreciation and Amortization 23,239,000
Capital Expenditure -27,305,000
Unlevered Free Cash Flow 45,655,146
Current Assets 119,288,000
Current Cash 10,761,000
Current Liabilities 76,556,000
Current Debt 11,160,000
Non-Cash Working Capital (NCWC) 43,131,000
Change in NCWC 8,209,000
EBIT 25,586,000
Tax Provision 8,607,000
Depreciation and Amortization 15,011,000
Capital Expenditure -6,176,000
Unlevered Free Cash Flow 32,880,201

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