DCF Tool

NCR

NCR Corp. – Computer Storage Device Manufacturing
NCR Corporation is a leading software- and services-led enterprise provider in the financial, retail and hospitality industries. NCR is headquartered in Atlanta, Ga., with 36,000 employees globally. NCR is a trademark of NCR Corporation in the United States and other countries.
Analysis Results
Intrinsic Value $43.30
Latest Price $32.17
Relative Value 26% undervalued
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Cash Flow (Billions)
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 -3.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -3.4%, 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 (billion) Present value (billion)
2022 0.31 0.292
2023 0.299 0.266
2024 0.289 0.242
2025 0.279 0.22
2026 0.27 0.201
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6.7 billion. This corresponds to a present value of 4.69 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.22 billion. Adding in the terminal value gives a total present value of 5.91 billion.

There are presently 137.0 million outstanding shares, so the intrinsic value per share is 43.3.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,876,000,000
Current Cash 447,000,000
Current Liabilities 2,808,000,000
Current Debt 57,000,000
Non-Cash Working Capital (NCWC) -322,000,000
Change in NCWC -382,000,000
EBIT 474,000,000
Tax Provision 186,000,000
Depreciation and Amortization 517,000,000
Capital Expenditure -348,000,000
Unlevered Free Cash Flow -49,436,619
Current Assets 2,478,000,000
Current Cash 338,000,000
Current Liabilities 2,088,000,000
Current Debt 8,000,000
Non-Cash Working Capital (NCWC) 60,000,000
Change in NCWC -319,000,000
EBIT 239,000,000
Tax Provision -53,000,000
Depreciation and Amortization 364,000,000
Capital Expenditure -263,000,000
Unlevered Free Cash Flow 21,000,000
Current Assets 3,144,000,000
Current Cash 509,000,000
Current Liabilities 2,538,000,000
Current Debt 282,000,000
Non-Cash Working Capital (NCWC) 379,000,000
Change in NCWC -83,000,000
EBIT 611,000,000
Tax Provision -273,000,000
Depreciation and Amortization 333,000,000
Capital Expenditure -329,000,000
Unlevered Free Cash Flow 532,000,000
Current Assets 3,023,000,000
Current Cash 464,000,000
Current Liabilities 2,282,000,000
Current Debt 185,000,000
Non-Cash Working Capital (NCWC) 462,000,000
Change in NCWC 6,000,000
EBIT 418,000,000
Tax Provision 73,000,000
Depreciation and Amortization 330,000,000
Capital Expenditure -313,000,000
Unlevered Free Cash Flow 368,000,000
Current Assets 2,830,000,000
Current Cash 537,000,000
Current Liabilities 1,889,000,000
Current Debt 52,000,000
Non-Cash Working Capital (NCWC) 456,000,000
Change in NCWC 112,000,000
EBIT 676,000,000
Tax Provision 242,000,000
Depreciation and Amortization 354,000,000
Capital Expenditure -294,000,000
Unlevered Free Cash Flow 508,597,510
Current Assets 2,757,000,000
Current Cash 498,000,000
Current Liabilities 1,965,000,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 344,000,000
Change in NCWC -109,000,000
EBIT 614,000,000
Tax Provision 92,000,000
Depreciation and Amortization 344,000,000
Capital Expenditure -227,000,000
Unlevered Free Cash Flow 472,955,145
Current Assets 2,549,000,000
Current Cash 328,000,000
Current Liabilities 1,781,000,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) 453,000,000
Change in NCWC -241,000,000
EBIT 197,000,000
Tax Provision 55,000,000
Depreciation and Amortization 308,000,000
Capital Expenditure -229,000,000
Unlevered Free Cash Flow 35,000,000
Current Assets 3,088,000,000
Current Cash 511,000,000
Current Liabilities 2,070,000,000
Current Debt 187,000,000
Non-Cash Working Capital (NCWC) 694,000,000
Change in NCWC -1,270,000,000
EBIT 457,000,000
Tax Provision -48,000,000
Depreciation and Amortization 284,000,000
Capital Expenditure -258,000,000
Unlevered Free Cash Flow -787,000,000
Current Assets 4,339,000,000
Current Cash 528,000,000
Current Liabilities 1,881,000,000
Current Debt 34,000,000
Non-Cash Working Capital (NCWC) 1,964,000,000
Change in NCWC 1,297,000,000
EBIT 666,000,000
Tax Provision 98,000,000
Depreciation and Amortization 208,000,000
Capital Expenditure -226,000,000
Unlevered Free Cash Flow 1,827,187,725
Current Assets 3,406,000,000
Current Cash 1,069,000,000
Current Liabilities 1,742,000,000
Current Debt 72,000,000
Non-Cash Working Capital (NCWC) 667,000,000
Change in NCWC 114,000,000
EBIT 232,000,000
Tax Provision 42,000,000
Depreciation and Amortization 166,000,000
Capital Expenditure -160,000,000
Unlevered Free Cash Flow 298,461,538

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