DCF Tool


Ingersoll-Rand Inc – Air and Gas Compressor Manufacturing
ingersoll rand (nyse:ir) advances the quality of life by creating and sustaining safe, comfortable and efficient environments. our people and our family of brands-including club car®, ingersoll rand®, thermo king®, and trane® work together to enhance the quality and comfort of air in homes and buildings; transport and protect food and perishables; secure homes and commercial properties; and increase industrial productivity and efficiency. we are a global business committed to a world of sustainable progress and enduring results.
Analysis Results
Intrinsic Value $132.50
Latest Price $64.07
Relative Value 52% 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 31.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 31.8%, 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)
2023 1.57 1.44
2024 2.07 1.74
2025 2.72 2.11
2026 3.59 2.56
2027 4.73 3.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 70.8 billion. This corresponds to a present value of 42.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.0 billion. Adding in the terminal value gives a total present value of 53.6 billion.

There are presently 404.0 million outstanding shares, so the intrinsic value per share is 132.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,967,300,000
Current Cash 1,613,000,000
Current Liabilities 1,674,000,000
Current Debt 36,500,000
Non-Cash Working Capital (NCWC) 716,800,000
Change in NCWC 140,400,000
EBIT 882,200,000
Tax Provision 149,600,000
Depreciation and Amortization 432,800,000
Capital Expenditure -94,600,000
Unlevered Free Cash Flow 1,183,148,741
Current Assets 4,114,900,000
Current Cash 2,109,600,000
Current Liabilities 1,467,700,000
Current Debt 38,800,000
Non-Cash Working Capital (NCWC) 576,400,000
Change in NCWC -79,700,000
EBIT 627,600,000
Tax Provision -21,800,000
Depreciation and Amortization 422,100,000
Capital Expenditure -64,100,000
Unlevered Free Cash Flow 905,900,000
Current Assets 3,862,100,000
Current Cash 1,747,800,000
Current Liabilities 1,498,600,000
Current Debt 40,400,000
Non-Cash Working Capital (NCWC) 656,100,000
Change in NCWC 181,300,000
EBIT 105,600,000
Tax Provision 13,000,000
Depreciation and Amortization 500,900,000
Capital Expenditure -48,700,000
Unlevered Free Cash Flow 739,100,000
Current Assets 1,543,900,000
Current Cash 502,100,000
Current Liabilities 574,600,000
Current Debt 7,600,000
Non-Cash Working Capital (NCWC) 474,800,000
Change in NCWC -50,100,000
EBIT 351,000,000
Tax Provision 31,800,000
Depreciation and Amortization 178,100,000
Capital Expenditure -43,200,000
Unlevered Free Cash Flow 377,330,644
Current Assets 1,331,200,000
Current Cash 217,800,000
Current Liabilities 596,400,000
Current Debt 7,900,000
Non-Cash Working Capital (NCWC) 524,900,000
Change in NCWC -8,900,000
EBIT 453,000,000
Tax Provision 80,100,000
Depreciation and Amortization 180,400,000
Capital Expenditure -52,200,000
Unlevered Free Cash Flow 468,479,399
Current Assets 1,463,600,000
Current Cash 388,900,000
Current Liabilities 561,800,000
Current Debt 20,900,000
Non-Cash Working Capital (NCWC) 533,800,000
Change in NCWC 71,874,000
EBIT 125,800,000
Tax Provision -131,200,000
Depreciation and Amortization 173,800,000
Capital Expenditure -56,800,000
Unlevered Free Cash Flow 314,674,000
Current Assets 1,188,513,000
Current Cash 253,203,000
Current Liabilities 497,849,000
Current Debt 24,465,000
Non-Cash Working Capital (NCWC) 461,926,000
Change in NCWC -61,219,000
EBIT 162,197,000
Tax Provision -31,860,000
Depreciation and Amortization 172,725,000
Capital Expenditure -74,416,000
Unlevered Free Cash Flow 199,287,000

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