DCF Tool

MAS

Masco Corp. – Wood Kitchen Cabinet and Countertop Manufacturing
Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; Kichler® decorative and outdoor lighting; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders.
Analysis Results
Intrinsic Value $112.42
Latest Price $54.29
Relative Value 52% 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 9.9%.

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 9.9%, 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)
2022 1.23 1.14
2023 1.35 1.17
2024 1.49 1.19
2025 1.63 1.21
2026 1.79 1.24
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 32.1 billion. This corresponds to a present value of 20.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.95 billion. Adding in the terminal value gives a total present value of 26.5 billion.

There are presently 236.0 million outstanding shares, so the intrinsic value per share is 112.42.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,844,000,000
Current Cash 1,852,000,000
Current Liabilities 3,878,000,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 1,134,000,000
Change in NCWC 902,000,000
EBIT 2,922,000,000
Tax Provision 420,000,000
Depreciation and Amortization 302,000,000
Capital Expenditure -256,000,000
Unlevered Free Cash Flow 2,978,110,465
Current Assets 3,489,000,000
Current Cash 1,326,000,000
Current Liabilities 1,934,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 232,000,000
Change in NCWC -236,000,000
EBIT 1,298,000,000
Tax Provision 269,000,000
Depreciation and Amortization 133,000,000
Capital Expenditure -114,000,000
Unlevered Free Cash Flow 772,280,282
Current Assets 2,711,000,000
Current Cash 697,000,000
Current Liabilities 1,548,000,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 468,000,000
Change in NCWC -63,000,000
EBIT 1,098,000,000
Tax Provision 230,000,000
Depreciation and Amortization 159,000,000
Capital Expenditure -162,000,000
Unlevered Free Cash Flow 755,698,030
Current Assets 2,766,000,000
Current Cash 559,000,000
Current Liabilities 1,684,000,000
Current Debt 8,000,000
Non-Cash Working Capital (NCWC) 531,000,000
Change in NCWC 130,000,000
EBIT 1,214,000,000
Tax Provision 258,000,000
Depreciation and Amortization 156,000,000
Capital Expenditure -219,000,000
Unlevered Free Cash Flow 980,412,667
Current Assets 3,215,000,000
Current Cash 1,302,000,000
Current Liabilities 1,628,000,000
Current Debt 116,000,000
Non-Cash Working Capital (NCWC) 401,000,000
Change in NCWC 116,000,000
EBIT 1,170,000,000
Tax Provision 305,000,000
Depreciation and Amortization 127,000,000
Capital Expenditure -173,000,000
Unlevered Free Cash Flow 836,779,661
Current Assets 2,934,000,000
Current Cash 1,191,000,000
Current Liabilities 1,460,000,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 285,000,000
Change in NCWC 174,000,000
EBIT 1,055,000,000
Tax Provision 296,000,000
Depreciation and Amortization 134,000,000
Capital Expenditure -180,000,000
Unlevered Free Cash Flow 806,759,036
Current Assets 3,328,000,000
Current Cash 1,716,000,000
Current Liabilities 2,506,000,000
Current Debt 1,005,000,000
Non-Cash Working Capital (NCWC) 111,000,000
Change in NCWC -357,000,000
EBIT 914,000,000
Tax Provision 293,000,000
Depreciation and Amortization 133,000,000
Capital Expenditure -158,000,000
Unlevered Free Cash Flow 143,317,851
Current Assets 3,863,000,000
Current Cash 1,689,000,000
Current Liabilities 2,211,000,000
Current Debt 505,000,000
Non-Cash Working Capital (NCWC) 468,000,000
Change in NCWC 320,000,000
EBIT 780,000,000
Tax Provision -333,000,000
Depreciation and Amortization 167,000,000
Capital Expenditure -128,000,000
Unlevered Free Cash Flow 1,139,000,000
Current Assets 3,468,000,000
Current Cash 1,544,000,000
Current Liabilities 1,782,000,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 148,000,000
Change in NCWC -62,000,000
EBIT 673,000,000
Tax Provision 111,000,000
Depreciation and Amortization 186,000,000
Capital Expenditure -126,000,000
Unlevered Free Cash Flow 498,873,271
Current Assets 3,217,000,000
Current Cash 1,351,000,000
Current Liabilities 1,862,000,000
Current Debt 206,000,000
Non-Cash Working Capital (NCWC) 210,000,000
Change in NCWC -3,000,000
EBIT 390,000,000
Tax Provision 83,000,000
Depreciation and Amortization 214,000,000
Capital Expenditure -119,000,000
Unlevered Free Cash Flow 399,000,000

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.