DCF Tool

KWR

Quaker Houghton – Other Chemical and Allied Products Merchant Wholesalers
Quaker Chemical is a leading global provider of process fluids, chemicals,specialties, and technical expertise to a wide range of industries, including steel, aluminum, automotive, mining, aerospace, tube and pipe, cans and others.
Analysis Results
Intrinsic Value $822.64
Latest Price $180.72
Relative Value 78% 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 34.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 34.6%, 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 0.419 0.384
2023 0.563 0.473
2024 0.758 0.584
2025 1.02 0.72
2026 1.37 0.889
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19.7 billion. This corresponds to a present value of 11.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.05 billion. Adding in the terminal value gives a total present value of 14.8 billion.

There are presently 17.9 million outstanding shares, so the intrinsic value per share is 822.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 920,254,000
Current Cash 165,176,000
Current Liabilities 430,467,000
Current Debt 56,935,000
Non-Cash Working Capital (NCWC) 381,546,000
Change in NCWC 114,645,000
EBIT 185,163,000
Tax Provision 34,939,000
Depreciation and Amortization 86,550,000
Capital Expenditure -21,457,000
Unlevered Free Cash Flow 323,528,549
Current Assets 792,727,000
Current Cash 181,833,000
Current Liabilities 382,960,000
Current Debt 38,967,000
Non-Cash Working Capital (NCWC) 266,901,000
Change in NCWC -3,945,000
EBIT 140,043,000
Tax Provision -5,296,000
Depreciation and Amortization 83,246,000
Capital Expenditure -17,901,000
Unlevered Free Cash Flow 201,443,000
Current Assets 715,972,000
Current Cash 123,524,000
Current Liabilities 359,934,000
Current Debt 38,332,000
Non-Cash Working Capital (NCWC) 270,846,000
Change in NCWC 107,283,000
EBIT 113,353,000
Tax Provision 2,084,000
Depreciation and Amortization 44,895,000
Capital Expenditure -15,545,000
Unlevered Free Cash Flow 243,031,582
Current Assets 418,510,000
Current Cash 104,147,000
Current Liabilities 151,470,000
Current Debt 670,000
Non-Cash Working Capital (NCWC) 163,563,000
Change in NCWC -4,137,000
EBIT 106,205,000
Tax Provision 25,050,000
Depreciation and Amortization 19,714,000
Capital Expenditure -12,886,000
Unlevered Free Cash Flow 77,545,494
Current Assets 406,586,000
Current Cash 89,879,000
Current Liabilities 154,743,000
Current Debt 5,736,000
Non-Cash Working Capital (NCWC) 167,700,000
Change in NCWC 6,754,000
EBIT 95,967,000
Tax Provision 41,653,000
Depreciation and Amortization 19,966,000
Capital Expenditure -10,872,000
Unlevered Free Cash Flow 49,311,076
Current Assets 376,468,000
Current Cash 88,818,000
Current Liabilities 127,411,000
Current Debt 707,000
Non-Cash Working Capital (NCWC) 160,946,000
Change in NCWC 39,000
EBIT 84,868,000
Tax Provision 23,226,000
Depreciation and Amortization 19,566,000
Capital Expenditure -9,954,000
Unlevered Free Cash Flow 71,669,128
Current Assets 365,853,000
Current Cash 81,053,000
Current Liabilities 124,555,000
Current Debt 662,000
Non-Cash Working Capital (NCWC) 160,907,000
Change in NCWC -1,382,000
EBIT 78,311,000
Tax Provision 17,785,000
Depreciation and Amortization 19,206,000
Capital Expenditure -11,033,000
Unlevered Free Cash Flow 65,344,000
Current Assets 351,518,000
Current Cash 64,731,000
Current Liabilities 124,901,000
Current Debt 403,000
Non-Cash Working Capital (NCWC) 162,289,000
Change in NCWC 31,395,000
EBIT 80,899,000
Tax Provision 23,539,000
Depreciation and Amortization 16,631,000
Capital Expenditure -13,052,000
Unlevered Free Cash Flow 92,603,515
Current Assets 328,847,000
Current Cash 68,492,000
Current Liabilities 130,856,000
Current Debt 1,395,000
Non-Cash Working Capital (NCWC) 130,894,000
Change in NCWC -8,045,000
EBIT 77,757,000
Tax Provision 20,489,000
Depreciation and Amortization 15,784,000
Capital Expenditure -11,439,000
Unlevered Free Cash Flow 53,976,798
Current Assets 277,810,000
Current Cash 32,547,000
Current Liabilities 107,792,000
Current Debt 1,468,000
Non-Cash Working Capital (NCWC) 138,939,000
Change in NCWC 2,312,000
EBIT 66,091,000
Tax Provision 15,575,000
Depreciation and Amortization 15,358,000
Capital Expenditure -12,735,000
Unlevered Free Cash Flow 55,385,685

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