DCF Tool

MIDD

Middleby Corp. – Food Product Machinery Manufacturing
The Middleby Corporation is a global leader in the foodservice equipment industry. The company develops, manufactures, markets and services a broad line of equipment used in the commercial foodservice, food processing, and residential kitchen equipment industries. The company's leading equipment brands serving the commercial foodservice industry include Anets®, APW Wyott®, Bakers Pride®, Beech®, BKI®, Blodgett®, Blodgett Combi®, Blodgett Range®, Bloomfield®, Britannia®, Carter-Hoffmann®, Celfrost®, Concordia®, CookTek®, Crown®, CTX®, Desmon®, Deutsche Beverage®, Doyon®, Eswood®, EVO®, Firex®, Follett®, frifri®, Giga®, Globe®, Goldstein®, Holman®, Houno®, IMC®, Induc®, Ink Kegs®, Inline Filling Systems®, Jade®, JoeTap®, Josper®, L2F®, Lang®, Lincat®, MagiKitch'n®, Market Forge®, Marsal®, Meheen®, Middleby Marshall®, MPC®, Nieco®, Nu-Vu®, PerfectFry®, Pitco®, QualServ®, RAM®, Southbend®, Ss Brewtech®, Star®, Starline®, Sveba Dahlen®, Synesso®, Tank®, Taylor®, Thor®, Toastmaster®, TurboChef®, Ultrafryer®, Varimixer®, Wells® Wild Goose® and Wunder-Bar®.
Analysis Results
Intrinsic Value $407.88
Latest Price $139.16
Relative Value 66% 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 16.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.4%, 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 0.886 0.82
2023 1.03 0.883
2024 1.2 0.951
2025 1.4 1.02
2026 1.63 1.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 27.4 billion. This corresponds to a present value of 17.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.78 billion. Adding in the terminal value gives a total present value of 22.0 billion.

There are presently 53.9 million outstanding shares, so the intrinsic value per share is 407.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,707,085,000
Current Cash 180,362,000
Current Liabilities 914,888,000
Current Debt 27,293,000
Non-Cash Working Capital (NCWC) 639,128,000
Change in NCWC 314,052,000
EBIT 526,884,000
Tax Provision 131,012,000
Depreciation and Amortization 125,243,000
Capital Expenditure -51,551,000
Unlevered Free Cash Flow 803,203,172
Current Assets 1,270,493,000
Current Cash 268,103,000
Current Liabilities 700,258,000
Current Debt 22,944,000
Non-Cash Working Capital (NCWC) 325,076,000
Change in NCWC -199,377,000
EBIT 350,151,000
Tax Provision 60,763,000
Depreciation and Amortization 110,532,000
Capital Expenditure -41,901,000
Unlevered Free Cash Flow 140,032,981
Current Assets 1,209,196,000
Current Cash 94,500,000
Current Liabilities 593,137,000
Current Debt 2,894,000
Non-Cash Working Capital (NCWC) 524,453,000
Change in NCWC 90,305,000
EBIT 509,684,000
Tax Provision 110,379,000
Depreciation and Amortization 103,428,000
Capital Expenditure -46,609,000
Unlevered Free Cash Flow 535,199,483
Current Assets 1,061,594,000
Current Cash 71,701,000
Current Liabilities 558,952,000
Current Debt 3,207,000
Non-Cash Working Capital (NCWC) 434,148,000
Change in NCWC 60,417,000
EBIT 465,298,000
Tax Provision 106,361,000
Depreciation and Amortization 97,238,000
Capital Expenditure -36,040,000
Unlevered Free Cash Flow 470,058,120
Current Assets 931,889,000
Current Cash 89,654,000
Current Liabilities 473,653,000
Current Debt 5,149,000
Non-Cash Working Capital (NCWC) 373,731,000
Change in NCWC 113,043,000
EBIT 476,250,000
Tax Provision 85,401,000
Depreciation and Amortization 69,774,000
Capital Expenditure -54,493,000
Unlevered Free Cash Flow 498,526,670
Current Assets 811,699,000
Current Cash 68,485,000
Current Liabilities 488,409,000
Current Debt 5,883,000
Non-Cash Working Capital (NCWC) 260,688,000
Change in NCWC -1,034,000
EBIT 456,749,000
Tax Provision 137,089,000
Depreciation and Amortization 58,234,000
Capital Expenditure -24,817,000
Unlevered Free Cash Flow 340,509,829
Current Assets 795,162,000
Current Cash 55,528,000
Current Liabilities 509,971,000
Current Debt 32,059,000
Non-Cash Working Capital (NCWC) 261,722,000
Change in NCWC 10,448,000
EBIT 331,357,000
Tax Provision 89,557,000
Depreciation and Amortization 54,074,000
Capital Expenditure -22,362,000
Unlevered Free Cash Flow 267,973,537
Current Assets 614,131,000
Current Cash 43,945,000
Current Liabilities 328,314,000
Current Debt 9,402,000
Non-Cash Working Capital (NCWC) 251,274,000
Change in NCWC 52,411,000
EBIT 293,913,000
Tax Provision 87,478,000
Depreciation and Amortization 41,252,000
Capital Expenditure -13,143,000
Unlevered Free Cash Flow 282,866,628
Current Assets 545,734,000
Current Cash 36,894,000
Current Liabilities 311,385,000
Current Debt 1,408,000
Non-Cash Working Capital (NCWC) 198,863,000
Change in NCWC 61,212,000
EBIT 244,462,000
Tax Provision 71,853,000
Depreciation and Amortization 43,164,000
Capital Expenditure -19,640,000
Unlevered Free Cash Flow 251,399,920
Current Assets 412,602,000
Current Cash 34,366,000
Current Liabilities 242,435,000
Current Debt 1,850,000
Non-Cash Working Capital (NCWC) 137,651,000
Change in NCWC 44,270,000
EBIT 188,084,000
Tax Provision 53,743,000
Depreciation and Amortization 26,903,000
Capital Expenditure -7,652,000
Unlevered Free Cash Flow 193,658,437

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