DCF Tool

NEU

NewMarket Corp. – All Other Miscellaneous Chemical Product and Preparation Manufacturing
NewMarket Corporation through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated additive packages to market-general additives, the NewMarket family of companies provides the world with the technology to make engines run smoother, machines last longer, and fuels burn cleaner.
Analysis Results
Intrinsic Value $836.88
Latest Price $316.99
Relative Value 62% 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 4.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.1%, 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 293 278
2023 306 274
2024 318 270
2025 331 266
2026 345 262
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9620 million. This corresponds to a present value of 6910 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1350 million. Adding in the terminal value gives a total present value of 8260 million.

There are presently 9.87 million outstanding shares, so the intrinsic value per share is 836.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,388,173,000
Current Cash 459,222,000
Current Liabilities 725,087,000
Current Debt 349,434,000
Non-Cash Working Capital (NCWC) 553,298,000
Change in NCWC 92,847,000
EBIT 257,782,000
Tax Provision 56,643,000
Depreciation and Amortization 84,320,000
Capital Expenditure -78,934,000
Unlevered Free Cash Flow 297,031,009
Current Assets 898,078,000
Current Cash 125,172,000
Current Liabilities 312,455,000
Current Debt 0
Non-Cash Working Capital (NCWC) 460,451,000
Change in NCWC 34,345,000
EBIT 311,802,000
Tax Provision 60,719,000
Depreciation and Amortization 84,002,000
Capital Expenditure -93,316,000
Unlevered Free Cash Flow 279,685,253
Current Assets 879,398,000
Current Cash 144,397,000
Current Liabilities 308,895,000
Current Debt 0
Non-Cash Working Capital (NCWC) 426,106,000
Change in NCWC -42,973,000
EBIT 337,321,000
Tax Provision 77,304,000
Depreciation and Amortization 87,560,000
Capital Expenditure -59,434,000
Unlevered Free Cash Flow 243,833,924
Current Assets 813,420,000
Current Cash 73,040,000
Current Liabilities 271,301,000
Current Debt 0
Non-Cash Working Capital (NCWC) 469,079,000
Change in NCWC 36,384,000
EBIT 292,674,000
Tax Provision 55,551,000
Depreciation and Amortization 71,759,000
Capital Expenditure -74,638,000
Unlevered Free Cash Flow 270,170,823
Current Assets 833,654,000
Current Cash 84,166,000
Current Liabilities 316,793,000
Current Debt 0
Non-Cash Working Capital (NCWC) 432,695,000
Change in NCWC 82,556,000
EBIT 336,769,000
Tax Provision 124,933,000
Depreciation and Amortization 55,340,000
Capital Expenditure -148,713,000
Unlevered Free Cash Flow 192,572,293
Current Assets 836,883,000
Current Cash 192,154,000
Current Liabilities 294,590,000
Current Debt 0
Non-Cash Working Capital (NCWC) 350,139,000
Change in NCWC -67,524,000
EBIT 362,690,000
Tax Provision 99,767,000
Depreciation and Amortization 44,893,000
Capital Expenditure -142,874,000
Unlevered Free Cash Flow 91,754,784
Current Assets 774,767,000
Current Cash 93,424,000
Current Liabilities 263,680,000
Current Debt 0
Non-Cash Working Capital (NCWC) 417,663,000
Change in NCWC -16,851,000
EBIT 356,720,000
Tax Provision 100,368,000
Depreciation and Amortization 42,265,000
Capital Expenditure -126,499,000
Unlevered Free Cash Flow 150,011,589
Current Assets 797,191,000
Current Cash 103,003,000
Current Liabilities 259,674,000
Current Debt 0
Non-Cash Working Capital (NCWC) 434,514,000
Change in NCWC 23,512,000
EBIT 362,720,000
Tax Provision 105,844,000
Depreciation and Amortization 41,538,000
Capital Expenditure -59,716,000
Unlevered Free Cash Flow 254,837,105
Current Assets 897,319,000
Current Cash 238,703,000
Current Liabilities 247,614,000
Current Debt 0
Non-Cash Working Capital (NCWC) 411,002,000
Change in NCWC -26,981,000
EBIT 351,845,000
Tax Provision 98,964,000
Depreciation and Amortization 46,144,000
Capital Expenditure -58,476,000
Unlevered Free Cash Flow 210,513,639
Current Assets 735,495,000
Current Cash 89,129,000
Current Liabilities 216,671,000
Current Debt 8,288,000
Non-Cash Working Capital (NCWC) 437,983,000
Change in NCWC 12,000,000
EBIT 365,476,000
Tax Provision 101,798,000
Depreciation and Amortization 43,389,000
Capital Expenditure -38,753,000
Unlevered Free Cash Flow 273,132,191

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