DCF Tool

LAKE

lakeland industries inc. is a multidivisional, publicly-held producer of quality, high-performance protective garments for industry in both domestic and worldwide markets. headquartered in ronkonkoma, new york since 1982, its more than $100 million in sales last year is hard evidence of growth and recognition, factors attributable directly to its ongoing research and development programs. lakeland's protective clothing products are proven on-the-job every day, and are specified routinely for workers in the chemical petrochemical, healthcare, automotive, glass, cement and other industries in which hazardous materials must be handled. these reliable and, therefore, popular lines are widely diversified, yet stand prominently on the common foundation of quality for which the company is well-known and respected, and to which it continues to pledge its efforts. lakeland is proven around the world. prove it to yourself. call us today at 1-800-645-9291. give your people, and your company, the
Analysis Results
Intrinsic Value $59.71
Latest Price $16.81
Relative Value 72% 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 10.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.1%, 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)
2024 11.2 10.8
2025 12.4 11.3
2026 13.6 11.9
2027 15.0 12.6
2028 16.5 13.2
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 495 million. This corresponds to a present value of 380 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 59.8 million. Adding in the terminal value gives a total present value of 440 million.

There are presently 7.37 million outstanding shares, so the intrinsic value per share is 59.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 104,981,000
Current Cash 24,639,000
Current Liabilities 17,988,000
Current Debt 405,000
Non-Cash Working Capital (NCWC) 62,759,000
Change in NCWC 6,847,000
EBIT 5,541,000
Tax Provision 3,598,000
Depreciation and Amortization 1,505,000
Capital Expenditure -1,985,000
Unlevered Free Cash Flow 8,263,964
Current Assets 120,646,000
Current Cash 52,719,000
Current Liabilities 12,015,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,912,000
Change in NCWC 294,000
EBIT 16,047,000
Tax Provision 4,781,000
Depreciation and Amortization 1,868,000
Capital Expenditure -801,000
Unlevered Free Cash Flow 12,658,374
Current Assets 123,608,000
Current Cash 52,596,000
Current Liabilities 15,394,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,618,000
Change in NCWC 2,201,000
EBIT 43,853,000
Tax Provision 8,774,000
Depreciation and Amortization 1,965,000
Capital Expenditure -1,662,000
Unlevered Free Cash Flow 37,588,398
Current Assets 79,807,000
Current Cash 14,606,000
Current Liabilities 12,939,000
Current Debt 1,155,000
Non-Cash Working Capital (NCWC) 53,417,000
Change in NCWC 954,000
EBIT 5,876,000
Tax Provision 2,472,000
Depreciation and Amortization 1,645,000
Capital Expenditure -1,033,000
Unlevered Free Cash Flow 4,917,148
Current Assets 75,470,000
Current Cash 12,831,000
Current Liabilities 10,334,000
Current Debt 158,000
Non-Cash Working Capital (NCWC) 52,463,000
Change in NCWC 1,761,000
EBIT 3,565,000
Tax Provision 2,022,000
Depreciation and Amortization 965,000
Capital Expenditure -3,103,000
Unlevered Free Cash Flow 1,117,207
Current Assets 76,500,000
Current Cash 15,788,000
Current Liabilities 10,379,000
Current Debt 369,000
Non-Cash Working Capital (NCWC) 50,702,000
Change in NCWC 8,238,000
EBIT 8,477,000
Tax Provision 7,903,000
Depreciation and Amortization 775,000
Capital Expenditure -905,000
Unlevered Free Cash Flow 8,555,067
Current Assets 60,086,000
Current Cash 10,365,000
Current Liabilities 12,325,000
Current Debt 5,068,000
Non-Cash Working Capital (NCWC) 42,464,000
Change in NCWC -6,962,000
EBIT 6,847,000
Tax Provision 2,380,000
Depreciation and Amortization 1,194,000
Capital Expenditure -413,000
Unlevered Free Cash Flow -1,931,777
Current Assets 63,672,000
Current Cash 7,022,000
Current Liabilities 19,958,000
Current Debt 12,734,000
Non-Cash Working Capital (NCWC) 49,426,000
Change in NCWC 4,203,473
EBIT 11,812,000
Tax Provision 3,117,000
Depreciation and Amortization 986,000
Capital Expenditure -840,000
Unlevered Free Cash Flow 12,785,842
Current Assets 66,818,027
Current Cash 6,761,977
Current Liabilities 23,824,311
Current Debt 8,990,788
Non-Cash Working Capital (NCWC) 45,222,527
Change in NCWC -3,778,800
EBIT 4,957,402
Tax Provision -8,337,360
Depreciation and Amortization 1,334,621
Capital Expenditure -904,703
Unlevered Free Cash Flow 1,608,520
Current Assets 65,481,005
Current Cash 4,555,097
Current Liabilities 26,948,550
Current Debt 15,023,969
Non-Cash Working Capital (NCWC) 49,001,327
Change in NCWC 2,980,660
EBIT -359,009
Tax Provision -2,851,391
Depreciation and Amortization 1,606,993
Capital Expenditure -828,894
Unlevered Free Cash Flow 3,399,750
Current Assets 63,871,883
Current Cash 6,736,962
Current Liabilities 27,902,396
Current Debt 16,788,142
Non-Cash Working Capital (NCWC) 46,020,667
Change in NCWC -14,421,319
EBIT -1,030,168
Tax Provision 5,035,765
Depreciation and Amortization 1,550,865
Capital Expenditure -1,384,539
Unlevered Free Cash Flow -15,285,161

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