DCF Tool

MSA

MSA Safety Inc – Commercial Photography
Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and supply of safety products that protect people and facility infrastructures. Many MSA products integrate a combination of electronics, mechanical systems and advanced materials to protect users against hazardous or life-threatening situations. The company's comprehensive product line is used by workers around the world in a broad range of markets, including the oil, gas and petrochemical industry, the fire service, the construction industry, mining and the military. MSA's core products include self-contained breathing apparatus, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, firefighter helmets and protective apparel, and fall protection devices. With 2020 revenues of $1.35 billion, MSA employs approximately 5,000 people worldwide. The company is headquartered north of Pittsburgh in Cranberry Township, Pa., and has manufacturing operations in the United States, Europe, Asia and Latin America. With more than 40 international locations, MSA realizes approximately half of its revenue from outside North America.
Analysis Results
Intrinsic Value $286.53
Latest Price $132.19
Relative Value 54% 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 19.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.3%, 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 343 321
2024 410 357
2025 489 398
2026 584 444
2027 697 494
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 13900 million. This corresponds to a present value of 9220 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2010 million. Adding in the terminal value gives a total present value of 11200 million.

There are presently 39.2 million outstanding shares, so the intrinsic value per share is 286.53.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 880,126,000
Current Cash 172,807,000
Current Liabilities 345,865,000
Current Debt 7,387,000
Non-Cash Working Capital (NCWC) 368,841,000
Change in NCWC 96,512,000
EBIT 277,947,000
Tax Provision 58,903,000
Depreciation and Amortization 56,317,000
Capital Expenditure -42,553,000
Unlevered Free Cash Flow 319,587,162
Current Assets 792,804,000
Current Cash 189,869,000
Current Liabilities 330,606,000
Current Debt 0
Non-Cash Working Capital (NCWC) 272,329,000
Change in NCWC 44,250,000
EBIT 39,429,000
Tax Provision 1,816,000
Depreciation and Amortization 50,317,000
Capital Expenditure -43,837,000
Unlevered Free Cash Flow 87,125,486
Current Assets 754,278,000
Current Cash 235,654,000
Current Liabilities 310,545,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 228,079,000
Change in NCWC -5,688,000
EBIT 202,810,000
Tax Provision 41,941,000
Depreciation and Amortization 39,674,000
Capital Expenditure -48,905,000
Unlevered Free Cash Flow 135,739,572
Current Assets 693,363,000
Current Cash 202,087,000
Current Liabilities 277,509,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 233,767,000
Change in NCWC 34,342,000
EBIT 219,890,000
Tax Provision 46,086,000
Depreciation and Amortization 38,020,000
Capital Expenditure -36,604,000
Unlevered Free Cash Flow 200,493,290
Current Assets 656,623,000
Current Cash 195,201,000
Current Liabilities 282,060,000
Current Debt 20,063,000
Non-Cash Working Capital (NCWC) 199,425,000
Change in NCWC -26,029,000
EBIT 189,056,000
Tax Provision 37,220,000
Depreciation and Amortization 37,852,000
Capital Expenditure -33,960,000
Unlevered Free Cash Flow 123,572,436
Current Assets 622,297,000
Current Cash 134,244,000
Current Liabilities 289,279,000
Current Debt 26,680,000
Non-Cash Working Capital (NCWC) 225,454,000
Change in NCWC 61,151,000
EBIT 66,104,000
Tax Provision 2,819,000
Depreciation and Amortization 37,877,000
Capital Expenditure -23,725,000
Unlevered Free Cash Flow 135,148,488
Current Assets 472,806,000
Current Cash 113,759,000
Current Liabilities 221,410,000
Current Debt 26,666,000
Non-Cash Working Capital (NCWC) 164,303,000
Change in NCWC 10,438,000
EBIT 170,652,000
Tax Provision 57,804,000
Depreciation and Amortization 35,273,000
Capital Expenditure -25,523,000
Unlevered Free Cash Flow 125,904,819
Current Assets 505,027,000
Current Cash 105,925,000
Current Liabilities 251,905,000
Current Debt 6,668,000
Non-Cash Working Capital (NCWC) 153,865,000
Change in NCWC -10,649,000
EBIT 137,203,000
Tax Provision 44,407,000
Depreciation and Amortization 31,684,000
Capital Expenditure -36,241,000
Unlevered Free Cash Flow 67,120,001
Current Assets 497,869,000
Current Cash 105,998,000
Current Liabilities 234,057,000
Current Debt 6,700,000
Non-Cash Working Capital (NCWC) 164,514,000
Change in NCWC -56,123,000
EBIT 144,305,000
Tax Provision 41,044,000
Depreciation and Amortization 29,921,000
Capital Expenditure -33,583,000
Unlevered Free Cash Flow 37,954,848
Current Assets 500,966,000
Current Cash 96,265,000
Current Liabilities 191,564,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 220,637,000
Change in NCWC 21,784,000
EBIT 141,781,000
Tax Provision 35,145,000
Depreciation and Amortization 30,764,000
Capital Expenditure -36,517,000
Unlevered Free Cash Flow 116,333,861
Current Assets 463,548,000
Current Cash 82,718,000
Current Liabilities 188,800,000
Current Debt 6,823,000
Non-Cash Working Capital (NCWC) 198,853,000
Change in NCWC -36,551,000
EBIT 140,598,000
Tax Provision 42,529,000
Depreciation and Amortization 31,702,000
Capital Expenditure -32,209,000
Unlevered Free Cash Flow 59,013,286

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