DCF Tool

NEOG

Neogen Corp. – Surgical and Medical Instrument Manufacturing
NEOGEN Corporation develops and markets products dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns. NEOGEN's Animal Safety Division is a leader in the development of animal genomics along with the manufacturing and distribution of a variety of animal healthcare products, including diagnostics, pharmaceuticals, veterinary instruments, wound care and disinfectants.
Analysis Results
Intrinsic Value $10.80
Latest Price $13.97
Relative Value 29% overvalued
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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 5.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.5%, 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 68.6 63.3
2024 72.3 61.7
2025 76.3 60.2
2026 80.5 58.6
2027 84.9 57.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1390 million. This corresponds to a present value of 864 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 301 million. Adding in the terminal value gives a total present value of 1160 million.

There are presently 108.0 million outstanding shares, so the intrinsic value per share is 10.8.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 626,798,000
Current Cash 381,051,000
Current Liabilities 77,844,000
Current Debt 0
Non-Cash Working Capital (NCWC) 167,903,000
Change in NCWC 11,138,000
EBIT 58,618,000
Tax Provision 11,900,000
Depreciation and Amortization 23,694,000
Capital Expenditure -24,429,000
Unlevered Free Cash Flow 57,435,068
Current Assets 591,451,000
Current Cash 381,087,000
Current Liabilities 53,599,000
Current Debt 0
Non-Cash Working Capital (NCWC) 156,765,000
Change in NCWC 11,521,000
EBIT 74,169,000
Tax Provision 14,386,000
Depreciation and Amortization 21,041,000
Capital Expenditure -26,712,000
Unlevered Free Cash Flow 65,843,052
Current Assets 537,406,000
Current Cash 343,673,000
Current Liabilities 48,489,000
Current Debt 0
Non-Cash Working Capital (NCWC) 145,244,000
Change in NCWC 1,490,000
EBIT 67,523,000
Tax Provision 12,830,000
Depreciation and Amortization 18,396,000
Capital Expenditure -24,052,000
Unlevered Free Cash Flow 51,375,531
Current Assets 449,529,000
Current Cash 267,524,000
Current Liabilities 38,251,000
Current Debt 0
Non-Cash Working Capital (NCWC) 143,754,000
Change in NCWC 17,463,000
EBIT 68,244,000
Tax Provision 12,783,000
Depreciation and Amortization 17,624,000
Capital Expenditure -14,661,000
Unlevered Free Cash Flow 76,713,105
Current Assets 375,789,000
Current Cash 210,810,000
Current Liabilities 38,688,000
Current Debt 0
Non-Cash Working Capital (NCWC) 126,291,000
Change in NCWC 12,967,000
EBIT 70,341,000
Tax Provision 10,250,000
Depreciation and Amortization 17,058,000
Capital Expenditure -20,946,000
Unlevered Free Cash Flow 69,605,867
Current Assets 292,961,000
Current Cash 143,635,000
Current Liabilities 36,002,000
Current Debt 0
Non-Cash Working Capital (NCWC) 113,324,000
Change in NCWC -283,000
EBIT 65,116,000
Tax Provision 22,700,000
Depreciation and Amortization 14,691,000
Capital Expenditure -14,578,000
Unlevered Free Cash Flow 42,776,108
Current Assets 250,001,000
Current Cash 107,796,000
Current Liabilities 28,598,000
Current Debt 0
Non-Cash Working Capital (NCWC) 113,607,000
Change in NCWC 22,032,000
EBIT 56,603,000
Tax Provision 18,975,000
Depreciation and Amortization 12,540,000
Capital Expenditure -14,222,000
Unlevered Free Cash Flow 57,605,425
Current Assets 231,195,000
Current Cash 114,164,000
Current Liabilities 25,456,000
Current Debt 0
Non-Cash Working Capital (NCWC) 91,575,000
Change in NCWC 4,292,000
EBIT 53,268,000
Tax Provision 18,500,000
Depreciation and Amortization 10,649,000
Capital Expenditure -9,619,000
Unlevered Free Cash Flow 39,666,541
Current Assets 188,746,000
Current Cash 76,496,000
Current Liabilities 24,967,000
Current Debt 0
Non-Cash Working Capital (NCWC) 87,283,000
Change in NCWC 21,924,000
EBIT 43,622,000
Tax Provision 15,000,000
Depreciation and Amortization 9,180,000
Capital Expenditure -11,543,000
Unlevered Free Cash Flow 47,976,985
Current Assets 168,447,000
Current Cash 85,369,000
Current Liabilities 17,719,000
Current Debt 0
Non-Cash Working Capital (NCWC) 65,359,000
Change in NCWC 10,042,000
EBIT 41,070,000
Tax Provision 14,100,000
Depreciation and Amortization 7,411,000
Capital Expenditure -8,897,000
Unlevered Free Cash Flow 35,550,333
Current Assets 143,941,000
Current Cash 68,645,000
Current Liabilities 19,979,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,317,000
Change in NCWC 6,695,000
EBIT 34,068,000
Tax Provision 11,450,000
Depreciation and Amortization 6,173,000
Capital Expenditure -12,413,000
Unlevered Free Cash Flow 23,037,601

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