DCF Tool

NDSN

Nordson Corp. – Heating Equipment (except Warm Air Furnaces) Manufacturing
Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, all supported by application expertise and direct global sales and service. Nordson serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in more than 35 countries.
Analysis Results
Intrinsic Value $487.74
Latest Price $220.82
Relative Value 55% 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 10.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.2%, 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 (billion) Present value (billion)
2023 0.68 0.655
2024 0.749 0.696
2025 0.825 0.739
2026 0.909 0.785
2027 1.0 0.833
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 30.0 billion. This corresponds to a present value of 24.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.71 billion. Adding in the terminal value gives a total present value of 27.8 billion.

There are presently 57.0 million outstanding shares, so the intrinsic value per share is 487.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,132,971,000
Current Cash 163,457,000
Current Liabilities 834,203,000
Current Debt 397,444,000
Non-Cash Working Capital (NCWC) 532,755,000
Change in NCWC 73,296,000
EBIT 702,360,000
Tax Provision 136,176,000
Depreciation and Amortization 99,923,000
Capital Expenditure -51,428,000
Unlevered Free Cash Flow 676,842,099
Current Assets 1,164,838,000
Current Cash 299,972,000
Current Liabilities 445,394,000
Current Debt 39,987,000
Non-Cash Working Capital (NCWC) 459,459,000
Change in NCWC -33,798,000
EBIT 615,127,000
Tax Provision 119,808,000
Depreciation and Amortization 103,883,000
Capital Expenditure -38,303,000
Unlevered Free Cash Flow 518,556,133
Current Assets 1,020,612,000
Current Cash 208,293,000
Current Liabilities 363,089,000
Current Debt 44,027,000
Non-Cash Working Capital (NCWC) 493,257,000
Change in NCWC -63,248,000
EBIT 436,916,000
Tax Provision 51,950,000
Depreciation and Amortization 113,302,000
Capital Expenditure -50,535,000
Unlevered Free Cash Flow 361,149,380
Current Assets 1,011,195,000
Current Cash 151,164,000
Current Liabilities 477,626,000
Current Debt 174,100,000
Non-Cash Working Capital (NCWC) 556,505,000
Change in NCWC 85,072,000
EBIT 483,113,000
Tax Provision 94,013,000
Depreciation and Amortization 110,244,000
Capital Expenditure -64,244,000
Unlevered Free Cash Flow 508,830,137
Current Assets 884,102,000
Current Cash 95,678,000
Current Liabilities 350,280,000
Current Debt 33,289,000
Non-Cash Working Capital (NCWC) 471,433,000
Change in NCWC -10,210,000
EBIT 494,557,000
Tax Provision 71,144,000
Depreciation and Amortization 108,407,000
Capital Expenditure -89,790,000
Unlevered Free Cash Flow 424,517,461
Current Assets 888,372,000
Current Cash 90,383,000
Current Liabilities 647,746,000
Current Debt 331,400,000
Non-Cash Working Capital (NCWC) 481,643,000
Change in NCWC 90,172,000
EBIT 460,140,000
Tax Provision 124,489,000
Depreciation and Amortization 90,854,000
Capital Expenditure -71,558,000
Unlevered Free Cash Flow 433,315,839
Current Assets 745,575,000
Current Cash 67,239,000
Current Liabilities 331,543,000
Current Debt 44,678,000
Non-Cash Working Capital (NCWC) 391,471,000
Change in NCWC -7,910,000
EBIT 399,206,000
Tax Provision 96,651,000
Depreciation and Amortization 70,304,000
Capital Expenditure -60,851,000
Unlevered Free Cash Flow 296,042,657
Current Assets 711,591,000
Current Cash 50,268,000
Current Liabilities 290,776,000
Current Debt 28,834,000
Non-Cash Working Capital (NCWC) 399,381,000
Change in NCWC 17,840,000
EBIT 329,141,000
Tax Provision 89,751,000
Depreciation and Amortization 65,194,000
Capital Expenditure -62,087,000
Unlevered Free Cash Flow 251,901,010
Current Assets 672,683,000
Current Cash 42,314,000
Current Liabilities 370,868,000
Current Debt 122,040,000
Non-Cash Working Capital (NCWC) 381,541,000
Change in NCWC 38,860,000
EBIT 367,105,000
Tax Provision 105,740,000
Depreciation and Amortization 59,754,000
Capital Expenditure -43,574,000
Unlevered Free Cash Flow 312,027,975
Current Assets 600,570,000
Current Cash 42,375,000
Current Liabilities 235,471,000
Current Debt 19,957,000
Non-Cash Working Capital (NCWC) 342,681,000
Change in NCWC 30,643,000
EBIT 324,975,000
Tax Provision 89,306,000
Depreciation and Amortization 54,438,000
Capital Expenditure -47,219,000
Unlevered Free Cash Flow 269,554,866
Current Assets 586,623,000
Current Cash 41,518,000
Current Liabilities 343,684,000
Current Debt 110,617,000
Non-Cash Working Capital (NCWC) 312,038,000
Change in NCWC 44,822,000
EBIT 340,044,000
Tax Provision 101,424,000
Depreciation and Amortization 38,990,000
Capital Expenditure -30,959,000
Unlevered Free Cash Flow 287,185,718

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