MTZ Intrinsic Value

MTZ

Mastec Inc. – Water and Sewer Line and Related Structures Construction

over the course of the last 80 years, mastec companies have been involved in some of the largest and most complex infrastructure construction projects across the country. our experience has given us a deep and comprehensive understanding of the markets we serve, as well as the ability to effectively manage people, projects and equipment. it allows us to proactively identify challenges, avoid pitfalls, and overcome obstacles, and to accurately set and meet expectations for schedule and budget. with offices across the country, a workforce of nearly 12,000 skilled professionals, and an extensive wholly-owned fleet of specialized construction equipment, mastec has the resources needed to reliably deliver quality work for even the most complicated jobs. our geographic reach, scalability, and overall financial stability enable us to meet each of our customers' changing needs on a daily basis. our focus on innovation colors everything we do, and as we've grown, we've fostered it throughout e

Analysis Results

Intrinsic Value	$219.93
Latest Price	$72.90
Relative Value	67% undervalued

Share results:

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Cash Flow (Billions)

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 9.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.8%, 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 (billion)	Present value (billion)
2023	0.782	0.727
2024	0.859	0.742
2025	0.943	0.758
2026	1.04	0.774
2027	1.14	0.791

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 21.0 billion. This corresponds to a present value of 13.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.79 billion. Adding in the terminal value gives a total present value of 17.3 billion.

There are presently 78.9 million outstanding shares, so the intrinsic value per share is 219.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	3,859,127,000
Current Cash	370,592,000
Current Liabilities	2,496,037,000
Current Debt	171,916,000
Non-Cash Working Capital (NCWC)	1,164,414,000
Change in NCWC	297,882,000
EBIT	153,956,000
Tax Provision	9,171,000
Depreciation and Amortization	507,148,000
Capital Expenditure	-263,352,000
Unlevered Free Cash Flow	662,843,399

Current Assets	2,873,954,000
Current Cash	360,736,000
Current Liabilities	1,784,598,000
Current Debt	137,912,000
Non-Cash Working Capital (NCWC)	866,532,000
Change in NCWC	200,724,000
EBIT	450,080,000
Tax Provision	99,346,000
Depreciation and Amortization	422,826,000
Capital Expenditure	-170,066,000
Unlevered Free Cash Flow	799,596,906

Current Assets	2,359,015,000
Current Cash	423,118,000
Current Liabilities	1,415,199,000
Current Debt	145,110,000
Non-Cash Working Capital (NCWC)	665,808,000
Change in NCWC	-335,627,000
EBIT	462,891,000
Tax Provision	102,465,000
Depreciation and Amortization	297,751,000
Capital Expenditure	-213,746,000
Unlevered Free Cash Flow	99,711,750

Current Assets	2,173,559,000
Current Cash	71,427,000
Current Liabilities	1,219,126,000
Current Debt	118,429,000
Non-Cash Working Capital (NCWC)	1,001,435,000
Change in NCWC	60,824,000
EBIT	605,329,000
Tax Provision	116,843,000
Depreciation and Amortization	235,482,000
Capital Expenditure	-126,473,000
Unlevered Free Cash Flow	636,733,623

Current Assets	2,168,989,000
Current Cash	27,422,000
Current Liabilities	1,283,611,000
Current Debt	82,655,000
Non-Cash Working Capital (NCWC)	940,611,000
Change in NCWC	-25,468,000
EBIT	493,756,000
Tax Provision	106,072,000
Depreciation and Amortization	212,930,000
Capital Expenditure	-180,420,000
Unlevered Free Cash Flow	357,427,465

Current Assets	1,852,366,000
Current Cash	40,326,000
Current Liabilities	963,827,000
Current Debt	117,866,000
Non-Cash Working Capital (NCWC)	966,079,000
Change in NCWC	337,850,000
EBIT	419,847,000
Tax Provision	22,942,000
Depreciation and Amortization	188,049,000
Capital Expenditure	-123,412,000
Unlevered Free Cash Flow	796,429,060

Current Assets	1,402,486,000
Current Cash	38,767,000
Current Liabilities	839,990,000
Current Debt	104,500,000
Non-Cash Working Capital (NCWC)	628,229,000
Change in NCWC	139,446,000
EBIT	269,758,000
Tax Provision	91,784,000
Depreciation and Amortization	164,915,000
Capital Expenditure	-117,114,000
Unlevered Free Cash Flow	347,362,019

Current Assets	1,132,902,000
Current Cash	4,984,000
Current Liabilities	752,789,000
Current Debt	113,654,000
Non-Cash Working Capital (NCWC)	488,783,000
Change in NCWC	-142,992,000
EBIT	51,455,000
Tax Provision	11,957,000
Depreciation and Amortization	169,662,000
Capital Expenditure	-84,410,000
Unlevered Free Cash Flow	-6,285,000

Current Assets	1,531,751,000
Current Cash	24,059,000
Current Liabilities	980,848,000
Current Debt	104,931,000
Non-Cash Working Capital (NCWC)	631,775,000
Change in NCWC	101,489,000
EBIT	241,083,000
Tax Provision	76,429,000
Depreciation and Amortization	154,452,000
Capital Expenditure	-109,254,000
Unlevered Free Cash Flow	294,912,404

Current Assets	1,305,983,000
Current Cash	22,927,000
Current Liabilities	825,546,000
Current Debt	72,776,000
Non-Cash Working Capital (NCWC)	530,286,000
Change in NCWC	147,706,000
EBIT	286,092,000
Tax Provision	92,542,000
Depreciation and Amortization	140,928,000
Capital Expenditure	-126,288,000
Unlevered Free Cash Flow	338,221,585

Current Assets	1,047,068,000
Current Cash	26,382,000
Current Liabilities	705,702,000
Current Debt	67,596,000
Non-Cash Working Capital (NCWC)	382,580,000
Change in NCWC	126,406,000
EBIT	238,112,000
Tax Provision	76,080,000
Depreciation and Amortization	92,601,000
Capital Expenditure	-79,686,000
Unlevered Free Cash Flow	283,433,129

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