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Merit Medical Systems, Inc. – Surgical and Medical Instrument Manufacturing
merit medical systems, inc. (nasdaq: mmsi) is a leading manufacturer of medical devices used in diagnostic & interventional cardiology & radiology procedures. its primary products consist of inflation devices used in angioplasty, stent placement & discography; diagnostic & therapeutic catheters used for various procedures in cardiology & radiology; guide wires used to place balloon angioplasty catheters within a patient's coronary arteries; products used to manage & monitor the administration of contrast & other fluid solutions during diagnostic & therapeutic procedures; thrombolytic catheters & fluid dispensing systems; angiography accessories; & standard & custom angiography kits. headquartered in south jordan, utah, a suburb of salt lake city, merit employs approximately 1,900 people worldwide. merit markets its products in the united states & europe (direct sales force) & the world (distributors). they call directly on physicians & clinicians in hospitals & clinics worldwide. the c
Analysis Results
Intrinsic Value $147.27
Latest Price $67.97
Relative Value 54% undervalued
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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 28.1%.

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 28.1%, 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)
2023 242 224
2024 310 266
2025 398 315
2026 509 373
2027 652 442
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10900 million. This corresponds to a present value of 6860 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1620 million. Adding in the terminal value gives a total present value of 8480 million.

There are presently 57.6 million outstanding shares, so the intrinsic value per share is 147.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 529,084,000
Current Cash 58,408,000
Current Liabilities 220,645,000
Current Debt 11,250,000
Non-Cash Working Capital (NCWC) 261,281,000
Change in NCWC 74,661,000
EBIT 101,064,000
Tax Provision 8,113,000
Depreciation and Amortization 92,198,000
Capital Expenditure -48,204,000
Unlevered Free Cash Flow 209,795,943
Current Assets 482,212,000
Current Cash 67,750,000
Current Liabilities 236,280,000
Current Debt 8,438,000
Non-Cash Working Capital (NCWC) 186,620,000
Change in NCWC -8,667,000
EBIT 78,396,000
Tax Provision 5,463,000
Depreciation and Amortization 95,784,000
Capital Expenditure -30,773,000
Unlevered Free Cash Flow 126,796,728
Current Assets 429,707,000
Current Cash 56,916,000
Current Liabilities 185,004,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 195,287,000
Change in NCWC -40,775,000
EBIT 45,916,000
Tax Provision -3,388,000
Depreciation and Amortization 106,816,000
Capital Expenditure -49,276,000
Unlevered Free Cash Flow 62,681,000
Current Assets 454,538,000
Current Cash 44,320,000
Current Liabilities 181,656,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 236,062,000
Change in NCWC 26,930,000
EBIT 39,477,000
Tax Provision -3,258,000
Depreciation and Amortization 104,356,000
Capital Expenditure -81,497,000
Unlevered Free Cash Flow 89,266,000
Current Assets 429,834,000
Current Cash 67,359,000
Current Liabilities 175,343,000
Current Debt 22,000,000
Non-Cash Working Capital (NCWC) 209,132,000
Change in NCWC 21,508,000
EBIT 59,220,000
Tax Provision 7,502,000
Depreciation and Amortization 69,546,000
Capital Expenditure -66,336,000
Unlevered Free Cash Flow 74,966,323
Current Assets 316,121,000
Current Cash 32,336,000
Current Liabilities 115,620,000
Current Debt 19,459,000
Non-Cash Working Capital (NCWC) 187,624,000
Change in NCWC 41,703,000
EBIT 45,716,000
Tax Provision 8,358,000
Depreciation and Amortization 53,582,000
Capital Expenditure -41,200,000
Unlevered Free Cash Flow 89,152,068
Current Assets 243,423,000
Current Cash 19,171,000
Current Liabilities 88,331,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 145,921,000
Change in NCWC 24,005,000
EBIT 35,398,000
Tax Provision 5,265,000
Depreciation and Amortization 43,755,000
Capital Expenditure -35,054,000
Unlevered Free Cash Flow 60,762,533
Current Assets 204,003,000
Current Cash 4,177,000
Current Liabilities 87,910,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 121,916,000
Change in NCWC 2,361,000
EBIT 38,623,000
Tax Provision 7,398,000
Depreciation and Amortization 37,425,000
Capital Expenditure -52,915,000
Unlevered Free Cash Flow 16,335,892
Current Assets 192,340,000
Current Cash 7,355,000
Current Liabilities 75,430,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 119,555,000
Change in NCWC 16,693,000
EBIT 40,696,000
Tax Provision 8,598,000
Depreciation and Amortization 35,929,000
Capital Expenditure -35,895,000
Unlevered Free Cash Flow 46,340,261
Current Assets 165,915,000
Current Cash 7,459,000
Current Liabilities 65,594,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 102,862,000
Change in NCWC 13,589,000
EBIT 31,839,000
Tax Provision 3,269,000
Depreciation and Amortization 32,542,000
Capital Expenditure -61,122,000
Unlevered Free Cash Flow 11,601,682
Current Assets 161,996,000
Current Cash 9,719,000
Current Liabilities 73,004,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 89,273,000
Change in NCWC 9,544,000
EBIT 32,091,000
Tax Provision 7,908,000
Depreciation and Amortization 22,534,000
Capital Expenditure -66,103,000
Unlevered Free Cash Flow -11,122,776

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