DCF Tool


ITT Inc – Iron and Steel Forging
itt is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation and industrial markets. founded in 1920, itt is headquartered in white plains, n.y., with employees in more than 35 countries and sales in a total of approximately 125 countries. the company generated 2012 revenues of $2.5 billion. our product and service offerings are organized in four businesses that generally operate in markets where specialized engineered solutions are required to support customer needs. • industrial process manufactures engineered fluid process equipment serving customers in the oil and gas, mining, power generation, chemical and other process markets. it also is an after market service provider. • motion technologies manufactures brake pads, shock absorbers and damping technologies for global transportation markets. • interconnect solutions manufactures a wide variety of connector products for the oil and
Analysis Results
Intrinsic Value $136.72
Latest Price $96.88
Relative Value 29% undervalued
Thoughts on this result? Let us know.
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 16.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.8%, 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 0.602 0.548
2024 0.704 0.582
2025 0.822 0.618
2026 0.96 0.657
2027 1.12 0.698
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14.4 billion. This corresponds to a present value of 8.12 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.1 billion. Adding in the terminal value gives a total present value of 11.2 billion.

There are presently 82.1 million outstanding shares, so the intrinsic value per share is 136.72.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,836,800,000
Current Cash 561,200,000
Current Liabilities 1,185,500,000
Current Debt 451,000,000
Non-Cash Working Capital (NCWC) 541,100,000
Change in NCWC 197,200,000
EBIT 457,300,000
Tax Provision 91,100,000
Depreciation and Amortization 107,400,000
Capital Expenditure -103,900,000
Unlevered Free Cash Flow 567,787,721
Current Assets 1,722,100,000
Current Cash 647,500,000
Current Liabilities 928,300,000
Current Debt 197,600,000
Non-Cash Working Capital (NCWC) 343,900,000
Change in NCWC 50,600,000
EBIT 513,900,000
Tax Provision 189,600,000
Depreciation and Amortization 113,100,000
Capital Expenditure -88,400,000
Unlevered Free Cash Flow 397,812,374
Current Assets 1,917,300,000
Current Cash 859,800,000
Current Liabilities 871,000,000
Current Debt 106,800,000
Non-Cash Working Capital (NCWC) 293,300,000
Change in NCWC -68,200,000
EBIT 283,800,000
Tax Provision 15,300,000
Depreciation and Amortization 112,200,000
Capital Expenditure -63,700,000
Unlevered Free Cash Flow 213,135,915
Current Assets 1,736,800,000
Current Cash 612,100,000
Current Liabilities 849,700,000
Current Debt 86,500,000
Non-Cash Working Capital (NCWC) 361,500,000
Change in NCWC 33,500,000
EBIT 412,400,000
Tax Provision 89,900,000
Depreciation and Amortization 113,400,000
Capital Expenditure -91,400,000
Unlevered Free Cash Flow 378,433,880
Current Assets 1,645,100,000
Current Cash 561,200,000
Current Liabilities 872,100,000
Current Debt 116,200,000
Non-Cash Working Capital (NCWC) 328,000,000
Change in NCWC -25,100,000
EBIT 356,600,000
Tax Provision 57,700,000
Depreciation and Amortization 109,400,000
Capital Expenditure -95,500,000
Unlevered Free Cash Flow 292,776,419
Current Assets 1,478,700,000
Current Cash 389,800,000
Current Liabilities 899,400,000
Current Debt 163,600,000
Non-Cash Working Capital (NCWC) 353,100,000
Change in NCWC 63,900,000
EBIT 309,700,000
Tax Provision 194,600,000
Depreciation and Amortization 105,300,000
Capital Expenditure -113,300,000
Unlevered Free Cash Flow 170,811,312
Current Assets 1,401,800,000
Current Cash 460,700,000
Current Liabilities 866,200,000
Current Debt 214,300,000
Non-Cash Working Capital (NCWC) 289,200,000
Change in NCWC -20,500,000
EBIT 258,900,000
Tax Provision 76,000,000
Depreciation and Amortization 102,000,000
Capital Expenditure -111,400,000
Unlevered Free Cash Flow 152,852,941
Current Assets 1,497,700,000
Current Cash 480,600,000
Current Liabilities 953,100,000
Current Debt 245,700,000
Non-Cash Working Capital (NCWC) 309,700,000
Change in NCWC 36,800,000
EBIT 380,100,000
Tax Provision 70,100,000
Depreciation and Amortization 90,000,000
Capital Expenditure -86,700,000
Unlevered Free Cash Flow 350,503,400
Current Assets 1,636,200,000
Current Cash 589,400,000
Current Liabilities 775,400,000
Current Debt 1,500,000
Non-Cash Working Capital (NCWC) 272,900,000
Change in NCWC 20,400,000
EBIT 266,400,000
Tax Provision 71,300,000
Depreciation and Amortization 88,300,000
Capital Expenditure -118,800,000
Unlevered Free Cash Flow 183,802,595
Current Assets 1,665,500,000
Current Cash 620,200,000
Current Liabilities 832,600,000
Current Debt 39,800,000
Non-Cash Working Capital (NCWC) 252,500,000
Change in NCWC 100,100,000
EBIT 185,800,000
Tax Provision -309,600,000
Depreciation and Amortization 86,900,000
Capital Expenditure -122,900,000
Unlevered Free Cash Flow 249,900,000
Current Assets 1,540,400,000
Current Cash 582,700,000
Current Liabilities 805,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) 152,400,000
Change in NCWC -87,600,000
EBIT 164,500,000
Tax Provision 39,600,000
Depreciation and Amortization 71,100,000
Capital Expenditure -83,800,000
Unlevered Free Cash Flow 20,509,859

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.