DCF Tool

MLM

Martin Marietta Materials, Inc. – Crushed and Broken Limestone Mining and Quarrying
Analysis Results
Intrinsic Value $424.75
Latest Price $327.76
Relative Value 23% 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 15.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.8%, 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)
2022 1.13 1.05
2023 1.31 1.12
2024 1.52 1.2
2025 1.76 1.28
2026 2.04 1.37
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 33.0 billion. This corresponds to a present value of 20.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.02 billion. Adding in the terminal value gives a total present value of 26.5 billion.

There are presently 62.4 million outstanding shares, so the intrinsic value per share is 424.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,025,600,000
Current Cash 258,400,000
Current Liabilities 752,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,014,600,000
Change in NCWC 52,900,000
EBIT 1,031,700,000
Tax Provision 153,200,000
Depreciation and Amortization 451,700,000
Capital Expenditure -423,100,000
Unlevered Free Cash Flow 928,446,709
Current Assets 1,668,300,000
Current Cash 207,300,000
Current Liabilities 499,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) 961,700,000
Change in NCWC 54,500,000
EBIT 1,006,700,000
Tax Provision 168,200,000
Depreciation and Amortization 393,500,000
Capital Expenditure -359,700,000
Unlevered Free Cash Flow 904,595,254
Current Assets 1,426,700,000
Current Cash 21,000,000
Current Liabilities 838,500,000
Current Debt 340,000,000
Non-Cash Working Capital (NCWC) 907,200,000
Change in NCWC -17,016,000
EBIT 885,400,000
Tax Provision 136,300,000
Depreciation and Amortization 371,500,000
Capital Expenditure -393,500,000
Unlevered Free Cash Flow 685,111,756
Current Assets 1,365,816,000
Current Cash 44,892,000
Current Liabilities 786,750,000
Current Debt 390,042,000
Non-Cash Working Capital (NCWC) 924,216,000
Change in NCWC 136,727,000
EBIT 704,216,000
Tax Provision 105,705,000
Depreciation and Amortization 344,033,000
Capital Expenditure -375,954,000
Unlevered Free Cash Flow 679,805,531
Current Assets 2,631,160,000
Current Cash 1,446,364,000
Current Liabilities 697,216,000
Current Debt 299,909,000
Non-Cash Working Capital (NCWC) 787,489,000
Change in NCWC 117,694,000
EBIT 709,019,000
Tax Provision -94,457,000
Depreciation and Amortization 297,162,000
Capital Expenditure -410,325,000
Unlevered Free Cash Flow 713,550,000
Current Assets 1,086,385,000
Current Cash 50,038,000
Current Liabilities 546,588,000
Current Debt 180,036,000
Non-Cash Working Capital (NCWC) 669,795,000
Change in NCWC 93,746,000
EBIT 669,004,000
Tax Provision 181,584,000
Depreciation and Amortization 285,253,000
Capital Expenditure -387,267,000
Unlevered Free Cash Flow 460,612,739
Current Assets 1,082,168,000
Current Cash 168,409,000
Current Liabilities 367,191,000
Current Debt 29,481,000
Non-Cash Working Capital (NCWC) 576,049,000
Change in NCWC -221,987,000
EBIT 487,880,000
Tax Provision 124,863,000
Depreciation and Amortization 263,587,000
Capital Expenditure -318,232,000
Unlevered Free Cash Flow 64,031,921
Current Assets 1,288,816,000
Current Cash 108,651,000
Current Liabilities 396,648,000
Current Debt 14,519,000
Non-Cash Working Capital (NCWC) 798,036,000
Change in NCWC 280,697,000
EBIT 357,764,000
Tax Provision 94,847,000
Depreciation and Amortization 222,746,000
Capital Expenditure -232,183,000
Unlevered Free Cash Flow 492,844,874
Current Assets 755,366,000
Current Cash 42,437,000
Current Liabilities 210,549,000
Current Debt 14,959,000
Non-Cash Working Capital (NCWC) 517,339,000
Change in NCWC 9,991,000
EBIT 217,988,000
Tax Provision 44,045,000
Depreciation and Amortization 173,761,000
Capital Expenditure -155,233,000
Unlevered Free Cash Flow 188,043,166
Current Assets 700,401,000
Current Cash 25,394,000
Current Liabilities 173,335,000
Current Debt 5,676,000
Non-Cash Working Capital (NCWC) 507,348,000
Change in NCWC 42,050,000
EBIT 154,953,000
Tax Provision 16,950,000
Depreciation and Amortization 177,211,000
Capital Expenditure -151,023,000
Unlevered Free Cash Flow 197,669,896

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