DCF Tool

MDU

MDU Resources Group Inc – Water and Sewer Line and Related Structures Construction
MDU Resources Group, Inc., a member of the S&P MidCap 400 index and the S&P High-Yield Dividend Aristocrats index, is Building a Strong America® by providing essential products and services through its regulated energy delivery and construction materials and services businesses.
Analysis Results
Intrinsic Value $380.41
Latest Price $30.67
Relative Value 92% undervalued
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Cash Flow (Billions)
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 69.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 69.7%, 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 0.437 0.414
2023 0.742 0.664
2024 1.26 1.07
2025 2.14 1.71
2026 3.63 2.74
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 98.9 billion. This corresponds to a present value of 70.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.6 billion. Adding in the terminal value gives a total present value of 77.4 billion.

There are presently 203.0 million outstanding shares, so the intrinsic value per share is 380.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,550,943,000
Current Cash 54,161,000
Current Liabilities 1,092,240,000
Current Debt 148,053,000
Non-Cash Working Capital (NCWC) 552,595,000
Change in NCWC 186,762,000
EBIT 534,219,000
Tax Provision 88,920,000
Depreciation and Amortization 299,214,000
Capital Expenditure -659,425,000
Unlevered Free Cash Flow 258,974,967
Current Assets 1,337,347,000
Current Cash 59,547,000
Current Liabilities 963,522,000
Current Debt 51,555,000
Non-Cash Working Capital (NCWC) 365,833,000
Change in NCWC -15,522,000
EBIT 544,925,000
Tax Provision 84,590,000
Depreciation and Amortization 285,100,000
Capital Expenditure -558,007,000
Unlevered Free Cash Flow 159,477,358
Current Assets 1,297,701,000
Current Cash 66,459,000
Current Liabilities 866,427,000
Current Debt 16,540,000
Non-Cash Working Capital (NCWC) 381,355,000
Change in NCWC -14,633,000
EBIT 481,220,000
Tax Provision 63,279,000
Depreciation and Amortization 256,017,000
Capital Expenditure -576,065,000
Unlevered Free Cash Flow 70,114,097
Current Assets 1,184,132,000
Current Cash 53,948,000
Current Liabilities 986,050,000
Current Debt 251,854,000
Non-Cash Working Capital (NCWC) 395,988,000
Change in NCWC 24,951,000
EBIT 401,723,000
Tax Provision 47,485,000
Depreciation and Amortization 220,205,000
Capital Expenditure -568,230,000
Unlevered Free Cash Flow 18,448,424
Current Assets 1,069,995,000
Current Cash 34,599,000
Current Liabilities 812,858,000
Current Debt 148,499,000
Non-Cash Working Capital (NCWC) 371,037,000
Change in NCWC 65,730,000
EBIT 428,712,000
Tax Provision 65,041,000
Depreciation and Amortization 207,486,000
Capital Expenditure -341,382,000
Unlevered Free Cash Flow 280,883,981
Current Assets 977,475,000
Current Cash 46,107,000
Current Liabilities 669,659,000
Current Debt 43,598,000
Non-Cash Working Capital (NCWC) 305,307,000
Change in NCWC 27,206,000
EBIT 409,120,000
Tax Provision 93,132,000
Depreciation and Amortization 216,318,000
Capital Expenditure -388,183,000
Unlevered Free Cash Flow 147,664,882
Current Assets 1,021,042,000
Current Cash 84,591,000
Current Liabilities 947,639,000
Current Debt 289,289,000
Non-Cash Working Capital (NCWC) 278,101,000
Change in NCWC -135,772,000
EBIT 254,133,000
Tax Provision 65,603,000
Depreciation and Amortization 227,730,000
Capital Expenditure -625,375,000
Unlevered Free Cash Flow -371,753,021
Current Assets 1,194,973,000
Current Cash 81,855,000
Current Liabilities 968,694,000
Current Debt 269,449,000
Non-Cash Working Capital (NCWC) 413,873,000
Change in NCWC 103,533,000
EBIT 488,184,000
Tax Provision 119,969,000
Depreciation and Amortization 401,368,000
Capital Expenditure -972,102,000
Unlevered Free Cash Flow -121,470,594
Current Assets 1,116,688,000
Current Cash 45,225,000
Current Liabilities 784,900,000
Current Debt 23,777,000
Non-Cash Working Capital (NCWC) 310,340,000
Change in NCWC -80,892,000
EBIT 492,767,000
Tax Provision 136,736,000
Depreciation and Amortization 386,856,000
Capital Expenditure -909,400,000
Unlevered Free Cash Flow -272,786,589
Current Assets 1,128,081,000
Current Cash 49,042,000
Current Liabilities 850,115,000
Current Debt 162,308,000
Non-Cash Working Capital (NCWC) 391,232,000
Change in NCWC 118,852,000
EBIT 416,390,000
Tax Provision -31,146,000
Depreciation and Amortization 359,205,000
Capital Expenditure -872,920,000
Unlevered Free Cash Flow 21,527,000

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