DCF Tool

MORN

Morningstar Inc – Investment Advice
Morningstar, Inc. is an American financial services firm headquartered in Chicago, Illinois and was founded by Joe Mansueto in 1984. It provides an array of investment research and investment management services.
Analysis Results
Intrinsic Value $39.23
Latest Price $236.65
Relative Value 503% overvalued
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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 1.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.4%, 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 (million) Present value (million)
2022 141 129
2023 143 119
2024 145 110
2025 147 101
2026 149 93.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1950 million. This corresponds to a present value of 1110 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 552 million. Adding in the terminal value gives a total present value of 1670 million.

There are presently 42.4 million outstanding shares, so the intrinsic value per share is 39.23.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 887,600,000
Current Cash 546,100,000
Current Liabilities 783,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -442,000,000
Change in NCWC -81,300,000
EBIT 262,400,000
Tax Provision 62,600,000
Depreciation and Amortization 150,700,000
Capital Expenditure -101,800,000
Unlevered Free Cash Flow 165,809,925
Current Assets 730,000,000
Current Cash 464,200,000
Current Liabilities 626,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -360,700,000
Change in NCWC -111,600,000
EBIT 215,500,000
Tax Provision 59,700,000
Depreciation and Amortization 139,500,000
Capital Expenditure -76,700,000
Unlevered Free Cash Flow 121,287,539
Current Assets 603,200,000
Current Cash 367,500,000
Current Liabilities 495,800,000
Current Debt 11,000,000
Non-Cash Working Capital (NCWC) -249,100,000
Change in NCWC -92,000,000
EBIT 188,700,000
Tax Provision 45,600,000
Depreciation and Amortization 117,700,000
Capital Expenditure -80,000,000
Unlevered Free Cash Flow 90,853,846
Current Assets 601,600,000
Current Cash 395,900,000
Current Liabilities 362,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) -157,100,000
Change in NCWC -10,400,000
EBIT 213,700,000
Tax Provision 47,800,000
Depreciation and Amortization 96,700,000
Capital Expenditure -76,100,000
Unlevered Free Cash Flow 179,641,507
Current Assets 529,800,000
Current Cash 353,300,000
Current Liabilities 323,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) -146,700,000
Change in NCWC -19,800,000
EBIT 168,500,000
Tax Provision 42,900,000
Depreciation and Amortization 91,200,000
Capital Expenditure -66,600,000
Unlevered Free Cash Flow 133,096,162
Current Assets 472,000,000
Current Cash 304,000,000
Current Liabilities 294,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) -126,900,000
Change in NCWC -18,800,000
EBIT 180,600,000
Tax Provision 63,700,000
Depreciation and Amortization 70,700,000
Capital Expenditure -62,800,000
Unlevered Free Cash Flow 118,501,869
Current Assets 409,900,000
Current Cash 248,600,000
Current Liabilities 304,400,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) -108,100,000
Change in NCWC -19,542,000
EBIT 192,400,000
Tax Provision 62,700,000
Depreciation and Amortization 64,400,000
Capital Expenditure -57,300,000
Unlevered Free Cash Flow 118,252,219
Current Assets 399,773,000
Current Cash 224,572,000
Current Liabilities 293,759,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -88,558,000
Change in NCWC 43,407,000
EBIT 166,633,000
Tax Provision 35,678,000
Depreciation and Amortization 54,886,000
Capital Expenditure -58,320,000
Unlevered Free Cash Flow 154,426,881
Current Assets 446,893,000
Current Cash 298,567,000
Current Liabilities 280,291,000
Current Debt 0
Non-Cash Working Capital (NCWC) -131,965,000
Change in NCWC -27,792,000
EBIT 172,082,000
Tax Provision 56,031,000
Depreciation and Amortization 45,693,000
Capital Expenditure -33,583,000
Unlevered Free Cash Flow 102,665,971
Current Assets 474,610,000
Current Cash 321,418,000
Current Liabilities 257,365,000
Current Debt 0
Non-Cash Working Capital (NCWC) -104,173,000
Change in NCWC 24,619,000
EBIT 152,695,000
Tax Provision 52,878,000
Depreciation and Amortization 43,096,000
Capital Expenditure -30,039,000
Unlevered Free Cash Flow 138,497,550

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