DCF Tool

LKQ

LKQ Corp – Motor Vehicle Body Manufacturing
lkq corporation (nasdaq: lkq), a fortune 500 company, is north america’s largest provider of alternative collision auto parts, and a leading provider of recycled and remanufactured mechanical parts including engines and transmissions, all in connection with the repair of automobiles and other vehicles. lkq is also a leading distributor and marketer of specialty aftermarket equipment and accessories in north america. lkq is the largest distributor of mechanical and collision alternative parts in the united kingdom, and the largest distributor of mechanical parts in the netherlands. lkq also has operations in taiwan, belgium and france. lkq operates more than 570 facilities, offering its customers a broad range of replacement systems, components, equipment, and parts to repair and accessorize automobiles, trucks, recreational and performance vehicles. in 2013, lkq surpassed $5 billion in revenue. since its formation in 1998, lkq has grown through internal development and over 170 acquisi
Analysis Results
Intrinsic Value $83.63
Latest Price $48.79
Relative Value 42% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 7.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.0%, 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 1.14 1.06
2024 1.22 1.05
2025 1.31 1.05
2026 1.4 1.04
2027 1.5 1.03
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 26.8 billion. This corresponds to a present value of 17.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.24 billion. Adding in the terminal value gives a total present value of 22.4 billion.

There are presently 268.0 million outstanding shares, so the intrinsic value per share is 83.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,258,000,000
Current Cash 278,000,000
Current Liabilities 2,271,000,000
Current Debt 34,000,000
Non-Cash Working Capital (NCWC) 1,743,000,000
Change in NCWC -106,540,000
EBIT 1,453,000,000
Tax Provision 385,000,000
Depreciation and Amortization 264,000,000
Capital Expenditure -222,000,000
Unlevered Free Cash Flow 1,022,596,690
Current Assets 4,254,368,000
Current Cash 274,134,000
Current Liabilities 2,165,446,000
Current Debt 34,752,000
Non-Cash Working Capital (NCWC) 1,849,540,000
Change in NCWC 57,656,000
EBIT 1,517,648,000
Tax Provision 330,591,000
Depreciation and Amortization 284,003,000
Capital Expenditure -293,466,000
Unlevered Free Cash Flow 1,213,030,077
Current Assets 4,034,032,000
Current Cash 312,154,000
Current Liabilities 1,988,491,000
Current Debt 58,497,000
Non-Cash Working Capital (NCWC) 1,791,884,000
Change in NCWC -520,770,000
EBIT 1,059,926,000
Tax Provision 249,498,000
Depreciation and Amortization 299,497,000
Capital Expenditure -172,695,000
Unlevered Free Cash Flow 368,826,160
Current Assets 4,687,819,000
Current Cash 523,020,000
Current Liabilities 2,178,512,000
Current Debt 326,367,000
Non-Cash Working Capital (NCWC) 2,312,654,000
Change in NCWC -308,012,000
EBIT 948,447,000
Tax Provision 215,330,000
Depreciation and Amortization 314,406,000
Capital Expenditure -265,730,000
Unlevered Free Cash Flow 419,944,030
Current Assets 4,520,949,000
Current Cash 331,761,000
Current Liabilities 1,690,348,000
Current Debt 121,826,000
Non-Cash Working Capital (NCWC) 2,620,666,000
Change in NCWC 274,662,000
EBIT 883,442,000
Tax Provision 191,395,000
Depreciation and Amortization 294,077,000
Capital Expenditure -250,027,000
Unlevered Free Cash Flow 953,116,675
Current Assets 3,822,134,000
Current Cash 279,766,000
Current Liabilities 1,322,724,000
Current Debt 126,360,000
Non-Cash Working Capital (NCWC) 2,346,004,000
Change in NCWC 150,486,000
EBIT 872,897,000
Tax Provision 235,560,000
Depreciation and Amortization 230,203,000
Capital Expenditure -179,090,000
Unlevered Free Cash Flow 808,333,452
Current Assets 3,567,594,000
Current Cash 227,400,000
Current Liabilities 1,210,785,000
Current Debt 66,109,000
Non-Cash Working Capital (NCWC) 2,195,518,000
Change in NCWC 638,139,000
EBIT 800,568,000
Tax Provision 220,566,000
Depreciation and Amortization 206,086,000
Capital Expenditure -207,074,000
Unlevered Free Cash Flow 1,176,774,782
Current Assets 2,340,712,000
Current Cash 87,397,000
Current Liabilities 751,970,000
Current Debt 56,034,000
Non-Cash Working Capital (NCWC) 1,557,379,000
Change in NCWC 41,748,000
EBIT 718,034,000
Tax Provision 219,703,000
Depreciation and Amortization 128,192,000
Capital Expenditure -170,490,000
Unlevered Free Cash Flow 472,114,822
Current Assets 2,317,417,000
Current Cash 114,605,000
Current Liabilities 750,696,000
Current Debt 63,515,000
Non-Cash Working Capital (NCWC) 1,515,631,000
Change in NCWC 502,720,000
EBIT 662,569,000
Tax Provision 204,264,000
Depreciation and Amortization 125,437,000
Capital Expenditure -140,950,000
Unlevered Free Cash Flow 918,736,529
Current Assets 1,799,817,000
Current Cash 150,488,000
Current Liabilities 677,953,000
Current Debt 41,535,000
Non-Cash Working Capital (NCWC) 1,012,911,000
Change in NCWC 104,558,000
EBIT 540,353,000
Tax Provision 164,204,000
Depreciation and Amortization 86,463,000
Capital Expenditure -90,186,000
Unlevered Free Cash Flow 454,716,605
Current Assets 1,384,351,000
Current Cash 59,770,000
Current Liabilities 487,944,000
Current Debt 71,716,000
Non-Cash Working Capital (NCWC) 908,353,000
Change in NCWC 175,034,000
EBIT 440,704,000
Tax Provision 147,942,000
Depreciation and Amortization 70,165,000
Capital Expenditure -88,255,000
Unlevered Free Cash Flow 438,303,206

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.