DCF Tool

NGVT

Ingevity Corp – All Other Miscellaneous Chemical Product and Preparation Manufacturing
Ingevity provides specialty chemicals, high-performance carbon materials and engineered polymers that purify, protect and enhance the world around us. Through a team of talented and experienced people, Ingevity develops, manufactures, and brings to market products and processes that help customers solve complex problems. These products are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks, coatings, elastomers, bioplastics and automotive components that reduce gasoline vapor emissions. Headquartered in North Charleston, South Carolina, Ingevity operates from 25 locations around the world and employs approximately 1,850 people.
Analysis Results
Intrinsic Value $172.56
Latest Price $74.16
Relative Value 57% 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 8.3%.

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 8.3%, 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 274 257
2023 297 260
2024 322 264
2025 348 268
2026 377 271
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7980 million. This corresponds to a present value of 5370 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1320 million. Adding in the terminal value gives a total present value of 6690 million.

There are presently 38.8 million outstanding shares, so the intrinsic value per share is 172.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 724,900,000
Current Cash 275,400,000
Current Liabilities 268,900,000
Current Debt 19,600,000
Non-Cash Working Capital (NCWC) 200,200,000
Change in NCWC 26,600,000
EBIT 307,200,000
Tax Provision 44,700,000
Depreciation and Amortization 109,900,000
Capital Expenditure -103,800,000
Unlevered Free Cash Flow 255,552,088
Current Assets 628,700,000
Current Cash 257,700,000
Current Liabilities 223,400,000
Current Debt 26,000,000
Non-Cash Working Capital (NCWC) 173,600,000
Change in NCWC -39,700,000
EBIT 293,500,000
Tax Provision 53,700,000
Depreciation and Amortization 100,200,000
Capital Expenditure -82,100,000
Unlevered Free Cash Flow 204,860,655
Current Assets 463,200,000
Current Cash 56,900,000
Current Liabilities 215,500,000
Current Debt 22,500,000
Non-Cash Working Capital (NCWC) 213,300,000
Change in NCWC 40,600,000
EBIT 301,100,000
Tax Provision 44,200,000
Depreciation and Amortization 85,000,000
Capital Expenditure -114,800,000
Unlevered Free Cash Flow 253,503,247
Current Assets 422,700,000
Current Cash 77,900,000
Current Liabilities 183,300,000
Current Debt 11,200,000
Non-Cash Working Capital (NCWC) 172,700,000
Change in NCWC 37,500,000
EBIT 263,700,000
Tax Provision 40,000,000
Depreciation and Amortization 57,000,000
Capital Expenditure -93,900,000
Unlevered Free Cash Flow 216,743,642
Current Assets 368,700,000
Current Cash 89,700,000
Current Liabilities 153,200,000
Current Debt 9,400,000
Non-Cash Working Capital (NCWC) 135,200,000
Change in NCWC -100,000
EBIT 203,500,000
Tax Provision 29,600,000
Depreciation and Amortization 40,400,000
Capital Expenditure -52,600,000
Unlevered Free Cash Flow 156,740,045

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