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Innospec Inc – All Other Miscellaneous Chemical Product and Preparation Manufacturing
innospec is a global specialty chemicals company focused on bringing innovative new technologies to market combined with a fast and responsive service. we serve a range of industries across the world, bringing our products to customers in markets from oilfields, fuels, refineries and power stations to personal care. our global team of approximately 1300 employees spans 20 countries, applying their extensive experience and market understanding to customers’ local needs. integrating our global footprint with local service capability enables us to supply quality products that meet and anticipate changing market dynamics.
Analysis Results
Intrinsic Value $242.07
Latest Price $107.07
Relative Value 56% undervalued
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Cash Flow (Millions)
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 5.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.9%, 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 (million) Present value (million)
2023 175 168
2024 186 171
2025 197 174
2026 208 176
2027 221 179
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 6620 million. This corresponds to a present value of 5150 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 868 million. Adding in the terminal value gives a total present value of 6020 million.

There are presently 24.9 million outstanding shares, so the intrinsic value per share is 242.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 872,600,000
Current Cash 147,100,000
Current Liabilities 405,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 319,700,000
Change in NCWC 69,900,000
EBIT 187,300,000
Tax Provision 51,600,000
Depreciation and Amortization 40,100,000
Capital Expenditure -42,300,000
Unlevered Free Cash Flow 202,645,287
Current Assets 728,100,000
Current Cash 141,800,000
Current Liabilities 336,600,000
Current Debt 100,000
Non-Cash Working Capital (NCWC) 249,800,000
Change in NCWC 40,800,000
EBIT 130,300,000
Tax Provision 41,300,000
Depreciation and Amortization 42,700,000
Capital Expenditure -39,100,000
Unlevered Free Cash Flow 134,659,895
Current Assets 566,200,000
Current Cash 105,300,000
Current Liabilities 252,400,000
Current Debt 500,000
Non-Cash Working Capital (NCWC) 209,000,000
Change in NCWC -43,100,000
EBIT 74,800,000
Tax Provision 11,000,000
Depreciation and Amortization 46,000,000
Capital Expenditure -29,700,000
Unlevered Free Cash Flow 27,274,559
Current Assets 630,300,000
Current Cash 75,700,000
Current Liabilities 303,500,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 252,100,000
Change in NCWC -15,300,000
EBIT 149,900,000
Tax Provision 38,200,000
Depreciation and Amortization 47,600,000
Capital Expenditure -29,900,000
Unlevered Free Cash Flow 114,226,994
Current Assets 663,900,000
Current Cash 123,100,000
Current Liabilities 296,600,000
Current Debt 23,200,000
Non-Cash Working Capital (NCWC) 267,400,000
Change in NCWC 39,200,000
EBIT 140,600,000
Tax Provision 46,600,000
Depreciation and Amortization 49,600,000
Capital Expenditure -28,900,000
Unlevered Free Cash Flow 150,713,069
Current Assets 561,500,000
Current Cash 90,200,000
Current Liabilities 261,600,000
Current Debt 18,500,000
Non-Cash Working Capital (NCWC) 228,200,000
Change in NCWC 60,200,000
EBIT 132,400,000
Tax Provision 66,300,000
Depreciation and Amortization 50,400,000
Capital Expenditure -27,500,000
Unlevered Free Cash Flow 146,974,473
Current Assets 441,100,000
Current Cash 101,900,000
Current Liabilities 183,100,000
Current Debt 11,900,000
Non-Cash Working Capital (NCWC) 168,000,000
Change in NCWC 56,400,000
EBIT 97,400,000
Tax Provision 21,800,000
Depreciation and Amortization 38,100,000
Capital Expenditure -16,500,000
Unlevered Free Cash Flow 154,805,237
Current Assets 458,700,000
Current Cash 141,700,000
Current Liabilities 206,100,000
Current Debt 700,000
Non-Cash Working Capital (NCWC) 111,600,000
Change in NCWC -34,300,000
EBIT 114,000,000
Tax Provision 32,800,000
Depreciation and Amortization 35,200,000
Capital Expenditure -26,200,000
Unlevered Free Cash Flow 64,148,456
Current Assets 414,200,000
Current Cash 46,300,000
Current Liabilities 222,900,000
Current Debt 900,000
Non-Cash Working Capital (NCWC) 145,900,000
Change in NCWC -24,400,000
EBIT 110,600,000
Tax Provision 26,800,000
Depreciation and Amortization 29,100,000
Capital Expenditure -21,900,000
Unlevered Free Cash Flow 66,672,497
Current Assets 407,400,000
Current Cash 86,800,000
Current Liabilities 155,600,000
Current Debt 5,300,000
Non-Cash Working Capital (NCWC) 170,300,000
Change in NCWC 43,500,000
EBIT 92,100,000
Tax Provision 15,000,000
Depreciation and Amortization 20,400,000
Capital Expenditure -11,100,000
Unlevered Free Cash Flow 130,013,146
Current Assets 296,600,000
Current Cash 27,500,000
Current Liabilities 147,300,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 126,800,000
Change in NCWC 28,500,000
EBIT 99,700,000
Tax Provision 26,900,000
Depreciation and Amortization 11,500,000
Capital Expenditure -17,300,000
Unlevered Free Cash Flow 94,228,466

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