DCF Tool

INGR

ingredion incorporated is a leading global ingredient solutions provider to the food, beverage, brewing and pharmaceutical industries as well as numerous industrial sectors. we are committed to supplying our customers with quality, innovative ingredient solutions that are on trend and in demand. headquartered in the chicago suburb of westchester, illinois, we turn corn, tapioca, potatoes and other raw materials into a myriad of ingredients. with more than 11,000 employees around the world, we serve customers in more than 60 diverse markets in over 100 countries. in 2014, our net sales reached $5.7 billion. through strategic acquisitions, organic growth, and innovative research and development, we are providing unique product offerings to growing markets. our starches, sweeteners, texturants and nutritionals are used by our customers to provide everything from sweetness, taste and texture to immune system support, fat replacement and adhesive strength. we make foods and beverages ta
Analysis Results
Intrinsic Value $288.18
Latest Price $110.15
Relative Value 62% 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 4.9%.

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 4.9%, 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)
2024 0.598 0.568
2025 0.627 0.567
2026 0.658 0.566
2027 0.691 0.565
2028 0.725 0.564
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 21.8 billion. This corresponds to a present value of 16.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.83 billion. Adding in the terminal value gives a total present value of 18.9 billion.

There are presently 65.6 million outstanding shares, so the intrinsic value per share is 288.18.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,399,000,000
Current Cash 409,000,000
Current Liabilities 1,772,000,000
Current Debt 448,000,000
Non-Cash Working Capital (NCWC) 1,666,000,000
Change in NCWC -65,000,000
EBIT 960,000,000
Tax Provision 188,000,000
Depreciation and Amortization 219,000,000
Capital Expenditure -316,000,000
Unlevered Free Cash Flow 582,886,769
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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