DCF Tool

MWA

Mueller Water Products Inc – Industrial Valve Manufacturing
Mueller Water Products, Inc. (NYSE: MWA) is a leading manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. Our broad product and service portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment and water intelligence software. We help municipalities increase operational efficiencies, improve customer service and prioritize capital spending, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®.
Analysis Results
Intrinsic Value $13.46
Latest Price $10.22
Relative Value 24% 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 1.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.2%, 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 109 102
2023 111 97.1
2024 112 92.0
2025 113 87.2
2026 115 82.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2440 million. This corresponds to a present value of 1650 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 461 million. Adding in the terminal value gives a total present value of 2110 million.

There are presently 157.0 million outstanding shares, so the intrinsic value per share is 13.46.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,307,400,000
Current Cash 455,000,000
Current Liabilities 440,200,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 414,200,000
Change in NCWC 195,800,000
EBIT 279,400,000
Tax Provision 49,000,000
Depreciation and Amortization 119,200,000
Capital Expenditure -125,400,000
Unlevered Free Cash Flow 396,868,282
Current Assets 581,200,000
Current Cash 208,900,000
Current Liabilities 155,000,000
Current Debt 1,100,000
Non-Cash Working Capital (NCWC) 218,400,000
Change in NCWC 5,800,000
EBIT 129,800,000
Tax Provision 22,100,000
Depreciation and Amortization 57,800,000
Capital Expenditure -67,700,000
Unlevered Free Cash Flow 95,215,621
Current Assets 566,900,000
Current Cash 176,700,000
Current Liabilities 178,500,000
Current Debt 900,000
Non-Cash Working Capital (NCWC) 212,600,000
Change in NCWC 40,600,000
EBIT 138,200,000
Tax Provision 18,300,000
Depreciation and Amortization 53,000,000
Capital Expenditure -86,600,000
Unlevered Free Cash Flow 114,357,804
Current Assets 685,500,000
Current Cash 347,100,000
Current Liabilities 167,100,000
Current Debt 700,000
Non-Cash Working Capital (NCWC) 172,000,000
Change in NCWC -600,000
EBIT 123,200,000
Tax Provision -9,900,000
Depreciation and Amortization 43,700,000
Capital Expenditure -55,700,000
Unlevered Free Cash Flow 110,600,000
Current Assets 670,300,000
Current Cash 361,700,000
Current Liabilities 141,600,000
Current Debt 5,600,000
Non-Cash Working Capital (NCWC) 172,600,000
Change in NCWC -64,800,000
EBIT 111,100,000
Tax Provision 24,200,000
Depreciation and Amortization 41,900,000
Capital Expenditure -40,600,000
Unlevered Free Cash Flow 13,350,063
Current Assets 612,300,000
Current Cash 195,000,000
Current Liabilities 185,800,000
Current Debt 5,900,000
Non-Cash Working Capital (NCWC) 237,400,000
Change in NCWC -37,100,000
EBIT 145,500,000
Tax Provision 33,100,000
Depreciation and Amortization 52,600,000
Capital Expenditure -39,400,000
Unlevered Free Cash Flow 71,950,000
Current Assets 549,500,000
Current Cash 113,100,000
Current Liabilities 168,000,000
Current Debt 6,100,000
Non-Cash Working Capital (NCWC) 274,500,000
Change in NCWC 9,900,000
EBIT 130,400,000
Tax Provision 19,800,000
Depreciation and Amortization 58,100,000
Capital Expenditure -37,500,000
Unlevered Free Cash Flow 109,974,556
Current Assets 623,900,000
Current Cash 161,100,000
Current Liabilities 244,400,000
Current Debt 46,200,000
Non-Cash Working Capital (NCWC) 264,600,000
Change in NCWC 600,000
EBIT 127,200,000
Tax Provision 18,000,000
Depreciation and Amortization 56,700,000
Capital Expenditure -36,900,000
Unlevered Free Cash Flow 116,448,979
Current Assets 569,400,000
Current Cash 123,600,000
Current Liabilities 183,100,000
Current Debt 1,300,000
Non-Cash Working Capital (NCWC) 264,000,000
Change in NCWC 24,400,000
EBIT 98,800,000
Tax Provision 8,800,000
Depreciation and Amortization 59,200,000
Capital Expenditure -35,600,000
Unlevered Free Cash Flow 127,129,411
Current Assets 489,900,000
Current Cash 83,000,000
Current Liabilities 168,400,000
Current Debt 1,100,000
Non-Cash Working Capital (NCWC) 239,600,000
Change in NCWC -104,100,000
EBIT 66,900,000
Tax Provision 7,900,000
Depreciation and Amortization 60,600,000
Capital Expenditure -31,400,000
Unlevered Free Cash Flow -15,900,000

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