DCF Tool

MATW

Matthews International Corp. – Funeral Homes and Funeral Services
matthews international corporation has become a leader in the industries we serve by adhering to our belief that continuous quality improvement is paramount in every aspect of our business. in 2016, matthews achieved more than $1.4 billion in sales. today, the company is divided into three distinct business segments: brand solutions, memorialization and industrial. it boasts more than 10,000 employees on six continents in more than 100 locations. matthews brand solutions services consumer products by managing brand standards across all packaging components. most recently, matthews acquired sgk, a leading brand development, activation and deployment company that drives brand performance across 20+ countries. matthews has been a leader in the memorialization industry for more than a century and a half. we serve cemeteries and funeral homes with a full range of products and services. like all other businesses, our memorialization workforce takes great pride servicing our customers with un
Analysis Results
Intrinsic Value $57.23
Latest Price $28.80
Relative Value 50% 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 0.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 0.6%, 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)
2024 112 104
2025 113 97.3
2026 114 90.8
2027 114 84.8
2028 115 79.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2040 million. This corresponds to a present value of 1300 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 456 million. Adding in the terminal value gives a total present value of 1760 million.

There are presently 30.7 million outstanding shares, so the intrinsic value per share is 57.23.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 648,257,000
Current Cash 42,101,000
Current Liabilities 394,600,000
Current Debt 3,696,000
Non-Cash Working Capital (NCWC) 215,252,000
Change in NCWC 63,750,000
EBIT 88,117,000
Tax Provision 1,774,000
Depreciation and Amortization 96,530,000
Capital Expenditure -50,598,000
Unlevered Free Cash Flow 193,977,940
Current Assets 628,616,000
Current Cash 69,016,000
Current Liabilities 411,375,000
Current Debt 3,277,000
Non-Cash Working Capital (NCWC) 151,502,000
Change in NCWC -73,886,000
EBIT 38,517,000
Tax Provision -4,391,000
Depreciation and Amortization 104,056,000
Capital Expenditure -61,321,000
Unlevered Free Cash Flow 7,366,000
Current Assets 624,165,000
Current Cash 49,176,000
Current Liabilities 354,225,000
Current Debt 4,624,000
Non-Cash Working Capital (NCWC) 225,388,000
Change in NCWC -18,807,000
EBIT 42,034,000
Tax Provision 6,375,000
Depreciation and Amortization 133,512,000
Capital Expenditure -34,313,000
Unlevered Free Cash Flow 93,403,282
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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