DCF Tool

IR

Ingersoll-Rand Inc – Air and Gas Compressor Manufacturing
Ingersoll Rand Inc., driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on Ingersoll Rand for its technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where its products and services excel in the most complex and harsh conditions. Ingersoll Rand employees connect to customers for life by delivering proven expertise, productivity and efficiency improvements.
Analysis Results
Intrinsic Value $106.15
Latest Price $53.05
Relative Value 50% 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 32.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.3%, 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)
2022 1.21 1.11
2023 1.6 1.35
2024 2.11 1.65
2025 2.79 2.01
2026 3.7 2.44
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 56.6 billion. This corresponds to a present value of 34.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.56 billion. Adding in the terminal value gives a total present value of 43.0 billion.

There are presently 405.0 million outstanding shares, so the intrinsic value per share is 106.15.

Financial Statements

The following data was to determine the past cash flows.

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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