DCF Tool

KAI

Kadant, Inc. – Sawmill, Woodworking, and Paper Machinery Manufacturing
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. Its products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. Kadant is based in Westford, Massachusetts, with approximately 2,600 employees in 20 countries worldwide.
Analysis Results
Intrinsic Value $245.07
Latest Price $193.37
Relative Value 21% 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 14.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.7%, 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 117 109
2023 135 116
2024 154 123
2025 177 131
2026 203 139
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3530 million. This corresponds to a present value of 2240 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 617 million. Adding in the terminal value gives a total present value of 2860 million.

There are presently 11.7 million outstanding shares, so the intrinsic value per share is 245.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 383,882,000
Current Cash 91,186,000
Current Liabilities 221,497,000
Current Debt 5,356,000
Non-Cash Working Capital (NCWC) 76,555,000
Change in NCWC -14,369,000
EBIT 117,175,000
Tax Provision 27,171,000
Depreciation and Amortization 34,302,000
Capital Expenditure -12,771,000
Unlevered Free Cash Flow 95,923,746
Current Assets 289,820,000
Current Cash 65,682,000
Current Liabilities 134,688,000
Current Debt 1,474,000
Non-Cash Working Capital (NCWC) 90,924,000
Change in NCWC 3,452,000
EBIT 84,103,000
Tax Provision 17,948,000
Depreciation and Amortization 31,334,000
Capital Expenditure -7,595,000
Unlevered Free Cash Flow 90,808,966
Current Assets 297,576,000
Current Cash 66,786,000
Current Liabilities 146,169,000
Current Debt 2,851,000
Non-Cash Working Capital (NCWC) 87,472,000
Change in NCWC 7,862,000
EBIT 90,351,000
Tax Provision 16,358,000
Depreciation and Amortization 32,390,000
Capital Expenditure -9,957,000
Unlevered Free Cash Flow 99,202,024
Current Assets 252,761,000
Current Cash 45,830,000
Current Liabilities 128,989,000
Current Debt 1,668,000
Non-Cash Working Capital (NCWC) 79,610,000
Change in NCWC 20,546,000
EBIT 90,315,000
Tax Provision 18,482,000
Depreciation and Amortization 23,568,000
Capital Expenditure -16,559,000
Unlevered Free Cash Flow 96,881,142
Current Assets 266,023,000
Current Cash 75,425,000
Current Liabilities 132,230,000
Current Debt 696,000
Non-Cash Working Capital (NCWC) 59,064,000
Change in NCWC 11,471,000
EBIT 60,956,000
Tax Provision 26,070,000
Depreciation and Amortization 19,375,000
Capital Expenditure -17,281,000
Unlevered Free Cash Flow 46,957,422
Current Assets 207,350,000
Current Cash 71,487,000
Current Liabilities 88,913,000
Current Debt 643,000
Non-Cash Working Capital (NCWC) 47,593,000
Change in NCWC -619,000
EBIT 45,256,000
Tax Provision 12,083,000
Depreciation and Amortization 14,326,000
Capital Expenditure -5,804,000
Unlevered Free Cash Flow 40,884,240
Current Assets 205,120,000
Current Cash 65,530,000
Current Liabilities 96,628,000
Current Debt 5,250,000
Non-Cash Working Capital (NCWC) 48,212,000
Change in NCWC -3,525,000
EBIT 50,634,000
Tax Provision 14,762,000
Depreciation and Amortization 10,821,000
Capital Expenditure -5,479,000
Unlevered Free Cash Flow 37,311,361
Current Assets 183,674,000
Current Cash 45,378,000
Current Liabilities 87,170,000
Current Debt 611,000
Non-Cash Working Capital (NCWC) 51,737,000
Change in NCWC -5,342,000
EBIT 42,891,000
Tax Provision 12,447,000
Depreciation and Amortization 11,189,000
Capital Expenditure -6,755,000
Unlevered Free Cash Flow 29,124,377
Current Assets 206,288,000
Current Cash 50,032,000
Current Liabilities 99,802,000
Current Debt 625,000
Non-Cash Working Capital (NCWC) 57,079,000
Change in NCWC 10,706,000
EBIT 33,406,000
Tax Provision 9,316,000
Depreciation and Amortization 9,775,000
Capital Expenditure -6,261,000
Unlevered Free Cash Flow 38,202,809
Current Assets 175,593,000
Current Cash 54,553,000
Current Liabilities 75,292,000
Current Debt 625,000
Non-Cash Working Capital (NCWC) 46,373,000
Change in NCWC 14,324,000
EBIT 36,751,000
Tax Provision 4,852,000
Depreciation and Amortization 8,384,000
Capital Expenditure -4,250,000
Unlevered Free Cash Flow 50,246,131

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