DCF Tool

MMSI

Merit Medical Systems, Inc. – Surgical and Medical Instrument Manufacturing
Founded in 1987, Merit Medical Systems, Inc. is a leading manufacturer and marketer of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy. Merit serves client hospitals worldwide with a domestic and international sales force and clinical support team totaling in excess of 500 individuals. Merit employs approximately 6,000 people worldwide with facilities in South Jordan, Utah; Pearland, Texas; Richmond, Virginia; Rockland, Massachusetts; Aliso Viejo, California; Maastricht and Venlo, The Netherlands; Paris, France; Galway, Ireland; Beijing, China; Tijuana, Mexico; Joinville, Brazil; Ontario, Canada; Melbourne, Australia; Tokyo, Japan; Reading, United Kingdom; Johannesburg, South Africa; and Singapore.
Analysis Results
Intrinsic Value $67.62
Latest Price $63.32
Relative Value 6% undervalued
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Cash Flow (Millions)
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 18.5%.

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 18.5%, 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)
2022 145 134
2023 172 147
2024 204 162
2025 242 177
2026 287 194
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4820 million. This corresponds to a present value of 3020 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 815 million. Adding in the terminal value gives a total present value of 3840 million.

There are presently 56.8 million outstanding shares, so the intrinsic value per share is 67.62.

Financial Statements

The following data was to determine the past cash flows.

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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