MLAB Intrinsic Value

MLAB

Mesa Laboratories, Inc. – Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

mesa laboratories, inc., develops, manufactures and markets high-quality process validation, monitoring and calibration instruments and consumables worldwide. mesa offers quality data loggers for monitoring temperature, humidity, and pressure and biological indicators (bis) for medical device and pharmaceutical manufacturing sterilization monitoring. the datatrace data loggers and mesa bis are available to monitor and validate applications including steam and eo sterilization, autoclave validation, incubators, heat tunnels and more. mesa’s bi offering also includes bis for industrial use, hydrogen peroxide (h2o2), chlorine dioxide and more. the phoenix meter is a point-of-use dialysate qc meter used prior to each procedure. the 90xl meter is the industry standard for calibration of dialysis machines in the field. also available are industry leading nist-traceable calibration solutions. mesa also offers cap torque testers which are durable, reliable and computerized cap torque analyzers

Analysis Results

Intrinsic Value	$442.76
Latest Price	$112.94
Relative Value	74% undervalued

Share results:

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Cash Flow (Millions)

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 22.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.9%, 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	58.8	55.2
2025	72.3	63.6
2026	88.9	73.3
2027	109	84.5
2028	134	97.5

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2960 million. This corresponds to a present value of 2010 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 374 million. Adding in the terminal value gives a total present value of 2380 million.

There are presently 5.38 million outstanding shares, so the intrinsic value per share is 442.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	118,975,000
Current Cash	32,910,000
Current Liabilities	43,359,000
Current Debt	0
Non-Cash Working Capital (NCWC)	42,706,000
Change in NCWC	15,789,000
EBIT	3,320,000
Tax Provision	-1,319,000
Depreciation and Amortization	33,824,000
Capital Expenditure	-4,544,000
Unlevered Free Cash Flow	48,389,000

Current Assets	124,318,000
Current Cash	49,346,000
Current Liabilities	48,055,000
Current Debt	0
Non-Cash Working Capital (NCWC)	26,917,000
Change in NCWC	19,616,000
EBIT	4,702,000
Tax Provision	1,703,000
Depreciation and Amortization	25,068,000
Capital Expenditure	-4,432,000
Unlevered Free Cash Flow	42,713,511

Current Assets	303,749,000
Current Cash	263,865,000
Current Liabilities	32,583,000
Current Debt	0
Non-Cash Working Capital (NCWC)	7,301,000
Change in NCWC	-8,103,000
EBIT	12,449,000
Tax Provision	-971,000
Depreciation and Amortization	17,660,000
Capital Expenditure	-1,992,000
Unlevered Free Cash Flow	20,014,000

Current Assets	122,792,000
Current Cash	81,380,000
Current Liabilities	26,008,000
Current Debt	0
Non-Cash Working Capital (NCWC)	15,404,000
Change in NCWC	13,502,000
EBIT	7,842,000
Tax Provision	2,084,000
Depreciation and Amortization	12,990,000
Capital Expenditure	-1,498,000
Unlevered Free Cash Flow	28,075,519

Current Assets	33,623,000
Current Cash	10,185,000
Current Liabilities	23,661,000
Current Debt	2,125,000
Non-Cash Working Capital (NCWC)	1,902,000
Change in NCWC	-8,952,000
EBIT	17,855,000
Tax Provision	1,139,000
Depreciation and Amortization	9,428,000
Capital Expenditure	-1,262,000
Unlevered Free Cash Flow	14,710,558

Current Assets	31,988,000
Current Cash	5,469,000
Current Liabilities	17,290,000
Current Debt	1,625,000
Non-Cash Working Capital (NCWC)	10,854,000
Change in NCWC	-3,669,000
EBIT	16,002,000
Tax Provision	3,263,000
Depreciation and Amortization	9,471,000
Capital Expenditure	-2,799,000
Unlevered Free Cash Flow	15,742,000

Current Assets	35,785,000
Current Cash	5,820,000
Current Liabilities	16,567,000
Current Debt	1,125,000
Non-Cash Working Capital (NCWC)	14,523,000
Change in NCWC	4,003,000
EBIT	16,313,000
Tax Provision	3,113,000
Depreciation and Amortization	8,737,000
Capital Expenditure	-11,605,000
Unlevered Free Cash Flow	13,895,791

Current Assets	37,186,000
Current Cash	5,695,000
Current Liabilities	23,971,000
Current Debt	3,000,000
Non-Cash Working Capital (NCWC)	10,520,000
Change in NCWC	-5,411,000
EBIT	16,323,000
Tax Provision	4,386,000
Depreciation and Amortization	7,174,000
Capital Expenditure	-7,729,000
Unlevered Free Cash Flow	5,754,449

Current Assets	29,622,000
Current Cash	2,034,000
Current Liabilities	14,657,000
Current Debt	3,000,000
Non-Cash Working Capital (NCWC)	15,931,000
Change in NCWC	5,155,000
EBIT	15,864,000
Tax Provision	5,764,000
Depreciation and Amortization	5,656,000
Capital Expenditure	-2,828,000
Unlevered Free Cash Flow	17,888,826

Current Assets	26,566,000
Current Cash	5,575,000
Current Liabilities	10,215,000
Current Debt	0
Non-Cash Working Capital (NCWC)	10,776,000
Change in NCWC	-11,000
EBIT	11,785,000
Tax Provision	4,103,000
Depreciation and Amortization	3,844,000
Capital Expenditure	-1,041,000
Unlevered Free Cash Flow	10,886,711

Current Assets	19,455,000
Current Cash	4,006,000
Current Liabilities	4,662,000
Current Debt	0
Non-Cash Working Capital (NCWC)	10,787,000
Change in NCWC	3,079,000
EBIT	13,104,000
Tax Provision	4,528,000
Depreciation and Amortization	3,432,000
Capital Expenditure	-908,000
Unlevered Free Cash Flow	14,135,038

Current Assets	19,161,000
Current Cash	7,191,000
Current Liabilities	4,262,000
Current Debt	0
Non-Cash Working Capital (NCWC)	7,708,000
Change in NCWC	-1,077,000
EBIT	12,827,000
Tax Provision	4,412,000
Depreciation and Amortization	2,215,000
Capital Expenditure	-683,000
Unlevered Free Cash Flow	8,692,532

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