DCF Tool

MSM

MSC Industrial Direct Co., Inc. – General Rental Centers
MSC Industrial Direct Co., Inc. is a direct marketer and supplier of a broad range of metalworking and maintenance and repair supplies. The Company markets its products to industrial customers throughout the United States.
Analysis Results
Intrinsic Value $250.49
Latest Price $84.01
Relative Value 66% 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 5.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.4%, 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)
2023 460 433
2024 485 430
2025 511 427
2026 538 424
2027 567 421
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 9690 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2130 million. Adding in the terminal value gives a total present value of 11800 million.

There are presently 47.2 million outstanding shares, so the intrinsic value per share is 250.49.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,543,623,000
Current Cash 43,537,000
Current Liabilities 725,944,000
Current Debt 325,680,000
Non-Cash Working Capital (NCWC) 1,099,822,000
Change in NCWC 185,608,000
EBIT 474,386,000
Tax Provision 110,650,000
Depreciation and Amortization 87,566,000
Capital Expenditure -61,373,000
Unlevered Free Cash Flow 569,833,447
Current Assets 1,314,245,000
Current Cash 40,536,000
Current Liabilities 561,928,000
Current Debt 202,433,000
Non-Cash Working Capital (NCWC) 914,214,000
Change in NCWC 88,140,000
EBIT 339,047,000
Tax Provision 70,442,000
Depreciation and Amortization 87,424,000
Capital Expenditure -53,746,000
Unlevered Free Cash Flow 378,046,387
Current Assets 1,237,770,000
Current Cash 125,211,000
Current Liabilities 408,733,000
Current Debt 122,248,000
Non-Cash Working Capital (NCWC) 826,074,000
Change in NCWC -69,789,000
EBIT 350,740,000
Tax Provision 82,492,000
Depreciation and Amortization 69,079,000
Capital Expenditure -46,991,000
Unlevered Free Cash Flow 216,477,312
Current Assets 1,199,612,000
Current Cash 32,286,000
Current Liabilities 446,916,000
Current Debt 175,453,000
Non-Cash Working Capital (NCWC) 895,863,000
Change in NCWC 60,999,000
EBIT 399,996,000
Tax Provision 94,332,000
Depreciation and Amortization 65,377,000
Capital Expenditure -51,773,000
Unlevered Free Cash Flow 376,114,096
Current Assets 1,147,507,000
Current Cash 46,217,000
Current Liabilities 490,523,000
Current Debt 224,097,000
Non-Cash Working Capital (NCWC) 834,864,000
Change in NCWC 71,107,000
EBIT 420,553,000
Tax Provision 76,966,000
Depreciation and Amortization 63,154,000
Capital Expenditure -44,919,000
Unlevered Free Cash Flow 430,207,263
Current Assets 1,005,579,000
Current Cash 16,083,000
Current Liabilities 557,725,000
Current Debt 331,986,000
Non-Cash Working Capital (NCWC) 763,757,000
Change in NCWC 46,708,000
EBIT 379,000,000
Tax Provision 136,561,000
Depreciation and Amortization 62,980,000
Capital Expenditure -46,548,000
Unlevered Free Cash Flow 301,493,956
Current Assets 981,491,000
Current Cash 52,890,000
Current Liabilities 478,602,000
Current Debt 267,050,000
Non-Cash Working Capital (NCWC) 717,049,000
Change in NCWC -67,938,000
EBIT 375,960,000
Tax Provision 140,515,000
Depreciation and Amortization 71,930,000
Capital Expenditure -87,930,000
Unlevered Free Cash Flow 149,908,430
Current Assets 1,032,076,000
Current Cash 38,267,000
Current Liabilities 422,337,000
Current Debt 213,515,000
Non-Cash Working Capital (NCWC) 784,987,000
Change in NCWC 83,061,000
EBIT 379,529,000
Tax Provision 141,833,000
Depreciation and Amortization 69,729,000
Capital Expenditure -51,405,000
Unlevered Free Cash Flow 336,652,885
Current Assets 961,415,000
Current Cash 47,154,000
Current Liabilities 309,164,000
Current Debt 96,829,000
Non-Cash Working Capital (NCWC) 701,926,000
Change in NCWC 63,708,000
EBIT 383,184,000
Tax Provision 143,458,000
Depreciation and Amortization 64,946,000
Capital Expenditure -70,617,000
Unlevered Free Cash Flow 296,379,921
Current Assets 893,489,000
Current Cash 55,876,000
Current Liabilities 213,579,000
Current Debt 14,184,000
Non-Cash Working Capital (NCWC) 638,218,000
Change in NCWC 56,068,000
EBIT 385,526,000
Tax Provision 145,434,000
Depreciation and Amortization 49,479,000
Capital Expenditure -89,252,000
Unlevered Free Cash Flow 255,591,611
Current Assets 920,111,000
Current Cash 168,453,000
Current Liabilities 170,515,000
Current Debt 1,007,000
Non-Cash Working Capital (NCWC) 582,150,000
Change in NCWC 91,877,000
EBIT 412,216,000
Tax Provision 153,111,000
Depreciation and Amortization 34,723,000
Capital Expenditure -47,691,000
Unlevered Free Cash Flow 337,986,508

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