DCF Tool

LII

Lennox International Inc – Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
Lennox International Inc. is a global leader in energy-efficient climate-control solutions. Dedicated to sustainability and creating comfortable and healthier environments for its residential and commercial customers while reducing their carbon footprint, the Company leads the field in innovation with its air conditioning, heating, indoor air quality, and refrigeration systems.
Analysis Results
Intrinsic Value $365.45
Latest Price $249.51
Relative Value 32% 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 11.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.8%, 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 555 515
2023 620 536
2024 693 556
2025 775 578
2026 867 601
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15800 million. This corresponds to a present value of 10200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2790 million. Adding in the terminal value gives a total present value of 12900 million.

There are presently 35.4 million outstanding shares, so the intrinsic value per share is 365.45.

Financial Statements

The following data was to determine the past cash flows.

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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