DCF Tool

ITT

ITT Inc – Iron and Steel Forging
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin its modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in approximately 125 countries.
Analysis Results
Intrinsic Value $88.78
Latest Price $80.67
Relative Value 9% undervalued
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Cash Flow (Millions)
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 12.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.3%, 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 (million) Present value (million)
2022 435 396
2023 488 406
2024 548 415
2025 615 425
2026 691 435
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9170 million. This corresponds to a present value of 5260 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2080 million. Adding in the terminal value gives a total present value of 7340 million.

There are presently 82.7 million outstanding shares, so the intrinsic value per share is 88.78.

Financial Statements

The following data was to determine the past cash flows.

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

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