DCF Tool

MATW

Matthews International Corp. – Funeral Homes and Funeral Services
Matthews International Corporation is a global provider of brand solutions, memorialization products and industrial technologies. The SGK Brand Solutions segment is a leader in providing brand development, deployment and delivery services that help build its clients' brands and consumers' desire for them. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Industrial Technologies segment designs, manufactures and distributes marking, coding and industrial automation technologies and solutions. The Company has approximately 11,000 employees in more than 25 countries on six continents that are committed to delivering the highest quality products and services.
Analysis Results
Intrinsic Value $233.73
Latest Price $30.83
Relative Value 87% 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 8.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.3%, 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 192 185
2023 208 193
2024 225 201
2025 244 210
2026 264 218
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 7930 million. This corresponds to a present value of 6310 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1010 million. Adding in the terminal value gives a total present value of 7320 million.

There are presently 31.3 million outstanding shares, so the intrinsic value per share is 233.73.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,248,330,000
Current Cash 98,352,000
Current Liabilities 708,450,000
Current Debt 9,248,000
Non-Cash Working Capital (NCWC) 450,776,000
Change in NCWC 206,581,000
EBIT 84,068,000
Tax Provision 12,750,000
Depreciation and Amortization 267,024,000
Capital Expenditure -68,626,000
Unlevered Free Cash Flow 431,001,565
Current Assets 575,573,000
Current Cash 41,334,000
Current Liabilities 316,868,000
Current Debt 26,824,000
Non-Cash Working Capital (NCWC) 244,195,000
Change in NCWC -66,843,000
EBIT 26,215,000
Tax Provision -18,685,000
Depreciation and Amortization 119,058,000
Capital Expenditure -34,849,000
Unlevered Free Cash Flow 43,581,000
Current Assets 583,716,000
Current Cash 35,302,000
Current Liabilities 279,879,000
Current Debt 42,503,000
Non-Cash Working Capital (NCWC) 311,038,000
Change in NCWC 9,070,000
EBIT 85,825,000
Tax Provision 806,000
Depreciation and Amortization 90,793,000
Capital Expenditure -37,688,000
Unlevered Free Cash Flow 148,000,000
Current Assets 616,423,000
Current Cash 41,572,000
Current Liabilities 304,143,000
Current Debt 31,260,000
Non-Cash Working Capital (NCWC) 301,968,000
Change in NCWC 20,028,000
EBIT 132,834,000
Tax Provision -9,118,000
Depreciation and Amortization 76,974,000
Capital Expenditure -43,200,000
Unlevered Free Cash Flow 186,636,000
Current Assets 595,059,000
Current Cash 57,515,000
Current Liabilities 285,132,000
Current Debt 29,528,000
Non-Cash Working Capital (NCWC) 281,940,000
Change in NCWC -4,932,000
EBIT 112,603,000
Tax Provision 22,354,000
Depreciation and Amortization 67,981,000
Capital Expenditure -44,935,000
Unlevered Free Cash Flow 104,575,075
Current Assets 574,184,000
Current Cash 55,711,000
Current Liabilities 259,348,000
Current Debt 27,747,000
Non-Cash Working Capital (NCWC) 286,872,000
Change in NCWC -28,240,000
EBIT 118,815,000
Tax Provision 29,073,000
Depreciation and Amortization 65,480,000
Capital Expenditure -41,682,000
Unlevered Free Cash Flow 78,101,201
Current Assets 624,654,000
Current Cash 72,196,000
Current Liabilities 249,083,000
Current Debt 11,737,000
Non-Cash Working Capital (NCWC) 315,112,000
Change in NCWC 49,942,000
EBIT 105,023,000
Tax Provision 26,364,000
Depreciation and Amortization 62,620,000
Capital Expenditure -48,251,000
Unlevered Free Cash Flow 138,449,843
Current Assets 566,228,000
Current Cash 63,003,000
Current Liabilities 253,283,000
Current Debt 15,228,000
Non-Cash Working Capital (NCWC) 265,170,000
Change in NCWC 78,566,000
EBIT 81,522,000
Tax Provision 22,805,000
Depreciation and Amortization 42,864,000
Capital Expenditure -29,237,000
Unlevered Free Cash Flow 145,579,077
Current Assets 405,982,000
Current Cash 57,986,000
Current Liabilities 184,006,000
Current Debt 22,614,000
Non-Cash Working Capital (NCWC) 186,604,000
Change in NCWC 18,945,000
EBIT 95,792,000
Tax Provision 26,664,000
Depreciation and Amortization 37,865,000
Capital Expenditure -24,924,000
Unlevered Free Cash Flow 96,313,518
Current Assets 385,225,000
Current Cash 58,259,000
Current Liabilities 180,873,000
Current Debt 21,566,000
Non-Cash Working Capital (NCWC) 167,659,000
Change in NCWC 3,202,000
EBIT 93,577,000
Tax Provision 28,717,000
Depreciation and Amortization 28,821,000
Capital Expenditure -33,236,000
Unlevered Free Cash Flow 60,342,804

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