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MDU Resources Group Inc – Water and Sewer Line and Related Structures Construction
a strong infrastructure is the heart of our economy. it is the oil, natural gas and electricity that power business, industry and our daily lives. it is the pipes and wires that connect our homes, factories, offices and stores to bring them to life. it is the transportation network of roads, highways and airports that keeps our economy moving. infrastructure is our business. mdu resources group provides value-added natural resource products and related services that are essential to energy and transportation infrastructure. our company was founded in 1924 as a small electric utility serving a handful of farm communities on the border of montana and north dakota. we realized early the value of delivering a variety of services, and grew our company by developing a core line of businesses. today, we are a multibillion-dollar corporation with operations and customers across the country. mdu resources is the largest publicly traded company headquartered in the four-state region of nor
Analysis Results
Intrinsic Value $249.14
Latest Price $19.74
Relative Value 92% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 49.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 49.8%, 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 0.534 0.502
2024 0.799 0.708
2025 1.2 0.999
2026 1.79 1.41
2027 2.69 1.99
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 64.8 billion. This corresponds to a present value of 45.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.61 billion. Adding in the terminal value gives a total present value of 50.7 billion.

There are presently 204.0 million outstanding shares, so the intrinsic value per share is 249.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,011,748,000
Current Cash 80,517,000
Current Liabilities 1,479,603,000
Current Debt 324,531,000
Non-Cash Working Capital (NCWC) 776,159,000
Change in NCWC 223,564,000
EBIT 573,953,000
Tax Provision 94,783,000
Depreciation and Amortization 327,826,000
Capital Expenditure -656,588,000
Unlevered Free Cash Flow 351,018,981
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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