DCF Tool

LANC

Lancaster Colony Corp. – Fruit and Vegetable Canning
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice markets.
Analysis Results
Intrinsic Value $57.59
Latest Price $185.40
Relative Value 222% overvalued
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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 -1.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -1.5%, 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 90.4 84.7
2025 89.0 78.1
2026 87.7 72.0
2027 86.4 66.4
2028 85.1 61.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1810 million. This corresponds to a present value of 1220 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 362 million. Adding in the terminal value gives a total present value of 1580 million.

There are presently 27.5 million outstanding shares, so the intrinsic value per share is 57.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 374,463,000
Current Cash 88,473,000
Current Liabilities 168,752,000
Current Debt 1,944,000
Non-Cash Working Capital (NCWC) 119,182,000
Change in NCWC -9,273,000
EBIT 166,477,000
Tax Provision 32,011,000
Depreciation and Amortization 51,210,000
Capital Expenditure -90,181,000
Unlevered Free Cash Flow 81,043,838
Current Assets 351,781,000
Current Cash 60,283,000
Current Liabilities 165,585,000
Current Debt 2,542,000
Non-Cash Working Capital (NCWC) 128,455,000
Change in NCWC 64,435,000
EBIT 143,621,000
Tax Provision 22,802,000
Depreciation and Amortization 45,880,000
Capital Expenditure -131,972,000
Unlevered Free Cash Flow 92,825,248
Current Assets 423,481,000
Current Cash 188,055,000
Current Liabilities 173,923,000
Current Debt 2,517,000
Non-Cash Working Capital (NCWC) 64,020,000
Change in NCWC 2,940,000
EBIT 181,360,000
Tax Provision 43,413,000
Depreciation and Amortization 44,509,000
Capital Expenditure -87,865,000
Unlevered Free Cash Flow 98,555,878
Current Assets 385,612,000
Current Cash 198,273,000
Current Liabilities 126,259,000
Current Debt 0
Non-Cash Working Capital (NCWC) 61,080,000
Change in NCWC 8,505,000
EBIT 177,091,000
Tax Provision 42,094,000
Depreciation and Amortization 37,963,000
Capital Expenditure -82,642,000
Unlevered Free Cash Flow 99,289,830
Current Assets 368,569,000
Current Cash 196,288,000
Current Liabilities 119,706,000
Current Debt 0
Non-Cash Working Capital (NCWC) 52,575,000
Change in NCWC -26,783,000
EBIT 176,387,000
Tax Provision 44,993,000
Depreciation and Amortization 31,848,000
Capital Expenditure -70,880,000
Unlevered Free Cash Flow 69,986,446
Current Assets 378,877,000
Current Cash 205,752,000
Current Liabilities 93,767,000
Current Debt 0
Non-Cash Working Capital (NCWC) 79,358,000
Change in NCWC -2,061,000
EBIT 172,107,000
Tax Provision 38,889,000
Depreciation and Amortization 26,896,000
Capital Expenditure -31,025,000
Unlevered Free Cash Flow 127,495,910
Current Assets 301,146,000
Current Cash 143,104,000
Current Liabilities 76,623,000
Current Debt 0
Non-Cash Working Capital (NCWC) 81,419,000
Change in NCWC 4,675,000
EBIT 192,383,000
Tax Provision 60,202,000
Depreciation and Amortization 24,906,000
Capital Expenditure -27,005,000
Unlevered Free Cash Flow 128,971,617
Current Assets 267,827,000
Current Cash 118,080,000
Current Liabilities 73,003,000
Current Debt 0
Non-Cash Working Capital (NCWC) 76,744,000
Change in NCWC -9,408,000
EBIT 184,570,000
Tax Provision 62,869,000
Depreciation and Amortization 24,147,000
Capital Expenditure -16,671,000
Unlevered Free Cash Flow 119,790,451
Current Assets 342,998,000
Current Cash 182,202,000
Current Liabilities 74,644,000
Current Debt 0
Non-Cash Working Capital (NCWC) 86,152,000
Change in NCWC -528,000
EBIT 154,861,000
Tax Provision 52,866,000
Depreciation and Amortization 21,111,000
Capital Expenditure -18,298,000
Unlevered Free Cash Flow 104,174,303
Current Assets 367,291,000
Current Cash 211,539,000
Current Liabilities 69,072,000
Current Debt 0
Non-Cash Working Capital (NCWC) 86,680,000
Change in NCWC -38,815,000
EBIT 153,767,000
Tax Provision 52,293,000
Depreciation and Amortization 20,407,000
Capital Expenditure -15,961,000
Unlevered Free Cash Flow 66,938,512
Current Assets 326,058,000
Current Cash 123,386,000
Current Liabilities 77,177,000
Current Debt 0
Non-Cash Working Capital (NCWC) 125,495,000
Change in NCWC -1,937,000
EBIT 161,906,000
Tax Provision 52,734,000
Depreciation and Amortization 20,114,000
Capital Expenditure -24,147,000
Unlevered Free Cash Flow 103,227,067
Current Assets 391,739,000
Current Cash 191,636,000
Current Liabilities 72,671,000
Current Debt 0
Non-Cash Working Capital (NCWC) 127,432,000
Change in NCWC 2,658,000
EBIT 143,287,000
Tax Provision 50,223,000
Depreciation and Amortization 20,266,000
Capital Expenditure -16,347,000
Unlevered Free Cash Flow 100,584,716

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