DCF Tool


Lennox International Inc – Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
lennox international inc., through its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the united states, canada, and europe. the company operates in three segments: residential heating & cooling, commercial heating & cooling, and refrigeration. the residential heating & cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets. the commercial heating & cooling segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, and variable refrigerant flow commercial products for light commercial markets, as well as rooftop units, split system/air handler combinations, and variable refrigerant
Analysis Results
Intrinsic Value $405.78
Latest Price $378.50
Relative Value 7% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 16.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.0%, 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)
2023 0.758 0.692
2024 0.88 0.732
2025 1.02 0.774
2026 1.18 0.818
2027 1.37 0.865
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18.3 billion. This corresponds to a present value of 10.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.88 billion. Adding in the terminal value gives a total present value of 14.4 billion.

There are presently 35.5 million outstanding shares, so the intrinsic value per share is 405.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,496,500,000
Current Cash 61,100,000
Current Liabilities 1,595,700,000
Current Debt 710,600,000
Non-Cash Working Capital (NCWC) 550,300,000
Change in NCWC 227,200,000
EBIT 662,600,000
Tax Provision 118,700,000
Depreciation and Amortization 77,900,000
Capital Expenditure -101,100,000
Unlevered Free Cash Flow 738,878,954
Current Assets 1,175,400,000
Current Cash 36,500,000
Current Liabilities 827,100,000
Current Debt 11,300,000
Non-Cash Working Capital (NCWC) 323,100,000
Change in NCWC 55,900,000
EBIT 601,300,000
Tax Provision 96,100,000
Depreciation and Amortization 72,400,000
Capital Expenditure -106,800,000
Unlevered Free Cash Flow 519,631,048
Current Assets 1,087,600,000
Current Cash 129,000,000
Current Liabilities 701,300,000
Current Debt 9,900,000
Non-Cash Working Capital (NCWC) 267,200,000
Change in NCWC -132,700,000
EBIT 499,800,000
Tax Provision 88,100,000
Depreciation and Amortization 72,600,000
Capital Expenditure -78,500,000
Unlevered Free Cash Flow 262,295,283
Current Assets 1,120,900,000
Current Cash 40,200,000
Current Liabilities 1,002,700,000
Current Debt 321,900,000
Non-Cash Working Capital (NCWC) 399,900,000
Change in NCWC 64,500,000
EBIT 507,300,000
Tax Provision 99,100,000
Depreciation and Amortization 71,100,000
Capital Expenditure -105,600,000
Unlevered Free Cash Flow 438,317,070
Current Assets 1,089,400,000
Current Cash 46,300,000
Current Liabilities 1,008,500,000
Current Debt 300,800,000
Non-Cash Working Capital (NCWC) 335,400,000
Change in NCWC -112,700,000
EBIT 515,000,000
Tax Provision 107,600,000
Depreciation and Amortization 66,000,000
Capital Expenditure -95,200,000
Unlevered Free Cash Flow 254,668,711
Current Assets 1,137,300,000
Current Cash 68,200,000
Current Liabilities 654,500,000
Current Debt 33,500,000
Non-Cash Working Capital (NCWC) 448,100,000
Change in NCWC 128,500,000
EBIT 505,900,000
Tax Provision 156,900,000
Depreciation and Amortization 64,600,000
Capital Expenditure -98,300,000
Unlevered Free Cash Flow 429,631,659
Current Assets 1,005,900,000
Current Cash 50,200,000
Current Liabilities 888,600,000
Current Debt 252,500,000
Non-Cash Working Capital (NCWC) 319,600,000
Change in NCWC 9,000,000
EBIT 473,900,000
Tax Provision 124,100,000
Depreciation and Amortization 58,100,000
Capital Expenditure -84,300,000
Unlevered Free Cash Flow 310,658,306
Current Assets 938,200,000
Current Cash 38,900,000
Current Liabilities 824,000,000
Current Debt 235,300,000
Non-Cash Working Capital (NCWC) 310,600,000
Change in NCWC -89,200,000
EBIT 380,300,000
Tax Provision 95,400,000
Depreciation and Amortization 62,800,000
Capital Expenditure -69,900,000
Unlevered Free Cash Flow 155,618,471
Current Assets 1,014,000,000
Current Cash 37,500,000
Current Liabilities 827,300,000
Current Debt 250,600,000
Non-Cash Working Capital (NCWC) 399,800,000
Change in NCWC 82,200,000
EBIT 343,400,000
Tax Provision 109,500,000
Depreciation and Amortization 60,800,000
Capital Expenditure -88,400,000
Unlevered Free Cash Flow 279,604,848
Current Assets 902,400,000
Current Cash 38,000,000
Current Liabilities 714,000,000
Current Debt 167,200,000
Non-Cash Working Capital (NCWC) 317,600,000
Change in NCWC -13,700,000
EBIT 303,300,000
Tax Provision 94,400,000
Depreciation and Amortization 58,900,000
Capital Expenditure -78,300,000
Unlevered Free Cash Flow 165,819,686
Current Assets 987,100,000
Current Cash 51,800,000
Current Liabilities 639,600,000
Current Debt 35,600,000
Non-Cash Working Capital (NCWC) 331,300,000
Change in NCWC 40,500,000
EBIT 225,800,000
Tax Provision 66,700,000
Depreciation and Amortization 55,400,000
Capital Expenditure -50,200,000
Unlevered Free Cash Flow 196,830,391

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