DCF Tool

NOVT

Novanta Inc – Electromedical and Electrotherapeutic Apparatus Manufacturing
Novanta is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers ('OEMs') a competitive advantage. Novanta combines deep proprietary technology expertise and competencies in photonics, vision and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to its customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation and customer success.
Analysis Results
Intrinsic Value $54.66
Latest Price $151.46
Relative Value 177% 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 14.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.3%, 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 108 98.6
2023 124 103
2024 141 107
2025 161 112
2026 184 116
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2460 million. This corresponds to a present value of 1420 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 536 million. Adding in the terminal value gives a total present value of 1950 million.

There are presently 35.7 million outstanding shares, so the intrinsic value per share is 54.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 373,825,000
Current Cash 117,393,000
Current Liabilities 183,938,000
Current Debt 5,696,000
Non-Cash Working Capital (NCWC) 78,190,000
Change in NCWC -1,928,000
EBIT 82,074,000
Tax Provision 5,841,000
Depreciation and Amortization 43,394,000
Capital Expenditure -22,176,000
Unlevered Free Cash Flow 92,829,601
Current Assets 304,173,000
Current Cash 125,054,000
Current Liabilities 114,229,000
Current Debt 15,228,000
Non-Cash Working Capital (NCWC) 80,118,000
Change in NCWC -15,635,000
EBIT 59,698,000
Tax Provision 3,882,000
Depreciation and Amortization 38,293,000
Capital Expenditure -10,524,000
Unlevered Free Cash Flow 67,044,122
Current Assets 304,512,000
Current Cash 78,944,000
Current Liabilities 134,846,000
Current Debt 5,031,000
Non-Cash Working Capital (NCWC) 95,753,000
Change in NCWC -4,312,000
EBIT 71,856,000
Tax Provision 4,993,000
Depreciation and Amortization 38,280,000
Capital Expenditure -10,743,000
Unlevered Free Cash Flow 87,241,621
Current Assets 281,769,000
Current Cash 82,043,000
Current Liabilities 104,196,000
Current Debt 4,535,000
Non-Cash Working Capital (NCWC) 100,065,000
Change in NCWC 1,292,000
EBIT 79,054,000
Tax Provision 10,207,000
Depreciation and Amortization 37,052,000
Capital Expenditure -14,658,000
Unlevered Free Cash Flow 89,577,229
Current Assets 287,879,000
Current Cash 100,057,000
Current Liabilities 98,168,000
Current Debt 9,119,000
Non-Cash Working Capital (NCWC) 98,773,000
Change in NCWC 30,761,000
EBIT 64,837,000
Tax Provision 13,827,000
Depreciation and Amortization 30,758,000
Capital Expenditure -9,094,000
Unlevered Free Cash Flow 105,486,693
Current Assets 199,250,000
Current Cash 68,108,000
Current Liabilities 70,496,000
Current Debt 7,366,000
Non-Cash Working Capital (NCWC) 68,012,000
Change in NCWC -7,673,000
EBIT 40,508,000
Tax Provision 10,519,000
Depreciation and Amortization 20,357,000
Capital Expenditure -12,442,000
Unlevered Free Cash Flow 27,647,987
Current Assets 185,212,000
Current Cash 59,959,000
Current Liabilities 56,953,000
Current Debt 7,385,000
Non-Cash Working Capital (NCWC) 75,685,000
Change in NCWC -9,782,000
EBIT 37,187,000
Tax Provision 10,394,000
Depreciation and Amortization 19,114,000
Capital Expenditure -5,552,000
Unlevered Free Cash Flow 32,568,371
Current Assets 183,327,000
Current Cash 51,146,000
Current Liabilities 54,214,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 85,467,000
Change in NCWC -785,000
EBIT 29,271,000
Tax Provision -1,006,000
Depreciation and Amortization 23,797,000
Capital Expenditure -5,415,000
Unlevered Free Cash Flow 46,868,000
Current Assets 199,802,000
Current Cash 60,980,000
Current Liabilities 60,070,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 86,252,000
Change in NCWC -9,002,000
EBIT 24,378,000
Tax Provision 5,680,000
Depreciation and Amortization 20,207,000
Capital Expenditure -4,988,000
Unlevered Free Cash Flow 21,065,265
Current Assets 208,468,000
Current Cash 65,788,000
Current Liabilities 54,926,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 95,254,000
Change in NCWC -8,524,000
EBIT 24,405,000
Tax Provision -10,940,000
Depreciation and Amortization 13,676,000
Capital Expenditure -4,308,000
Unlevered Free Cash Flow 25,249,000

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