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Ingredion Inc – Wet Corn Milling
Ingredion Incorporated, headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2020 annual net sales of $6 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers around the world and approximately 12,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better.
Analysis Results
Intrinsic Value $250.63
Latest Price $107.56
Relative Value 57% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 4.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.0%, 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 0.534 0.509
2024 0.555 0.504
2025 0.577 0.5
2026 0.6 0.495
2027 0.624 0.491
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 18.7 billion. This corresponds to a present value of 14.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.5 billion. Adding in the terminal value gives a total present value of 16.5 billion.

There are presently 66.0 million outstanding shares, so the intrinsic value per share is 250.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,309,000,000
Current Cash 239,000,000
Current Liabilities 1,882,000,000
Current Debt 543,000,000
Non-Cash Working Capital (NCWC) 1,731,000,000
Change in NCWC 570,000,000
EBIT 779,000,000
Tax Provision 166,000,000
Depreciation and Amortization 215,000,000
Capital Expenditure -300,000,000
Unlevered Free Cash Flow 1,070,416,167
Current Assets 2,697,000,000
Current Cash 332,000,000
Current Liabilities 1,512,000,000
Current Debt 308,000,000
Non-Cash Working Capital (NCWC) 1,161,000,000
Change in NCWC 199,000,000
EBIT 663,000,000
Tax Provision 123,000,000
Depreciation and Amortization 220,000,000
Capital Expenditure -300,000,000
Unlevered Free Cash Flow 453,173,387
Current Assets 2,647,000,000
Current Cash 665,000,000
Current Liabilities 1,458,000,000
Current Debt 438,000,000
Non-Cash Working Capital (NCWC) 962,000,000
Change in NCWC -45,000,000
EBIT 644,000,000
Tax Provision 152,000,000
Depreciation and Amortization 213,000,000
Capital Expenditure -340,000,000
Unlevered Free Cash Flow 278,545,454
Current Assets 2,160,000,000
Current Cash 268,000,000
Current Liabilities 967,000,000
Current Debt 82,000,000
Non-Cash Working Capital (NCWC) 1,007,000,000
Change in NCWC -20,000,000
EBIT 702,000,000
Tax Provision 158,000,000
Depreciation and Amortization 220,000,000
Capital Expenditure -328,000,000
Unlevered Free Cash Flow 383,422,680
Current Assets 2,138,000,000
Current Cash 334,000,000
Current Liabilities 946,000,000
Current Debt 169,000,000
Non-Cash Working Capital (NCWC) 1,027,000,000
Change in NCWC 53,000,000
EBIT 757,000,000
Tax Provision 167,000,000
Depreciation and Amortization 247,000,000
Capital Expenditure -350,000,000
Unlevered Free Cash Flow 503,426,731
Current Assets 2,415,000,000
Current Cash 604,000,000
Current Liabilities 957,000,000
Current Debt 120,000,000
Non-Cash Working Capital (NCWC) 974,000,000
Change in NCWC 110,000,000
EBIT 862,000,000
Tax Provision 237,000,000
Depreciation and Amortization 209,000,000
Capital Expenditure -314,000,000
Unlevered Free Cash Flow 601,338,101
Current Assets 2,252,000,000
Current Cash 516,000,000
Current Liabilities 978,000,000
Current Debt 106,000,000
Non-Cash Working Capital (NCWC) 864,000,000
Change in NCWC 77,000,000
EBIT 823,000,000
Tax Provision 246,000,000
Depreciation and Amortization 196,000,000
Capital Expenditure -284,000,000
Unlevered Free Cash Flow 539,145,552
Current Assets 1,950,000,000
Current Cash 440,000,000
Current Liabilities 742,000,000
Current Debt 19,000,000
Non-Cash Working Capital (NCWC) 787,000,000
Change in NCWC -45,000,000
EBIT 687,000,000
Tax Provision 187,000,000
Depreciation and Amortization 194,000,000
Capital Expenditure -280,000,000
Unlevered Free Cash Flow 341,527,545
Current Assets 2,144,000,000
Current Cash 614,000,000
Current Liabilities 721,000,000
Current Debt 23,000,000
Non-Cash Working Capital (NCWC) 832,000,000
Change in NCWC -81,000,000
EBIT 590,000,000
Tax Provision 157,000,000
Depreciation and Amortization 195,000,000
Capital Expenditure -276,000,000
Unlevered Free Cash Flow 249,865,384
Current Assets 2,214,000,000
Current Cash 574,000,000
Current Liabilities 820,000,000
Current Debt 93,000,000
Non-Cash Working Capital (NCWC) 913,000,000
Change in NCWC 38,000,000
EBIT 597,000,000
Tax Provision 144,000,000
Depreciation and Amortization 194,000,000
Capital Expenditure -298,000,000
Unlevered Free Cash Flow 373,837,294
Current Assets 2,360,000,000
Current Cash 628,000,000
Current Liabilities 933,000,000
Current Debt 76,000,000
Non-Cash Working Capital (NCWC) 875,000,000
Change in NCWC -48,000,000
EBIT 682,000,000
Tax Provision 167,000,000
Depreciation and Amortization 211,000,000
Capital Expenditure -313,000,000
Unlevered Free Cash Flow 342,492,512

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