DCF Tool

NRC

National Research Corp – Research and Development in Biotechnology
NRC Health is the leading provider of in-depth customer insights in healthcare.
Analysis Results
Intrinsic Value $43.16
Latest Price $39.06
Relative Value 10% 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 10.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.1%, 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 39.7 37.2
2023 43.7 38.4
2024 48.1 39.6
2025 52.9 40.9
2026 58.3 42.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1280 million. This corresponds to a present value of 867 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 198 million. Adding in the terminal value gives a total present value of 1070 million.

There are presently 24.7 million outstanding shares, so the intrinsic value per share is 43.16.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 73,707,000
Current Cash 54,361,000
Current Liabilities 40,388,000
Current Debt 4,278,000
Non-Cash Working Capital (NCWC) -16,764,000
Change in NCWC -8,566,000
EBIT 50,270,000
Tax Provision 11,155,000
Depreciation and Amortization 6,374,000
Capital Expenditure -5,514,000
Unlevered Free Cash Flow 31,030,673
Current Assets 54,112,000
Current Cash 34,690,000
Current Liabilities 31,681,000
Current Debt 4,061,000
Non-Cash Working Capital (NCWC) -8,198,000
Change in NCWC 9,939,000
EBIT 42,144,000
Tax Provision 4,207,000
Depreciation and Amortization 7,505,000
Capital Expenditure -3,984,000
Unlevered Free Cash Flow 51,328,315
Current Assets 29,157,000
Current Cash 13,517,000
Current Liabilities 38,155,000
Current Debt 4,378,000
Non-Cash Working Capital (NCWC) -18,137,000
Change in NCWC 9,682,000
EBIT 43,035,000
Tax Provision 8,113,000
Depreciation and Amortization 5,539,000
Capital Expenditure -4,662,000
Unlevered Free Cash Flow 44,977,228
Current Assets 28,410,000
Current Cash 12,991,000
Current Liabilities 47,109,000
Current Debt 3,871,000
Non-Cash Working Capital (NCWC) -27,819,000
Change in NCWC -14,173,000
EBIT 35,275,000
Tax Provision 4,662,000
Depreciation and Amortization 5,463,000
Capital Expenditure -5,971,000
Unlevered Free Cash Flow 15,855,976
Current Assets 52,259,000
Current Cash 34,733,000
Current Liabilities 32,310,000
Current Debt 1,138,000
Non-Cash Working Capital (NCWC) -13,646,000
Change in NCWC 1,059,000
EBIT 34,219,000
Tax Provision 11,340,000
Depreciation and Amortization 4,586,000
Capital Expenditure -4,818,000
Unlevered Free Cash Flow 23,727,169
Current Assets 47,065,000
Current Cash 33,021,000
Current Liabilities 31,514,000
Current Debt 2,765,000
Non-Cash Working Capital (NCWC) -14,705,000
Change in NCWC 13,024,000
EBIT 31,197,000
Tax Provision 10,838,000
Depreciation and Amortization 4,225,000
Capital Expenditure -3,973,000
Unlevered Free Cash Flow 33,689,957
Current Assets 56,111,000
Current Cash 42,145,000
Current Liabilities 44,171,000
Current Debt 2,476,000
Non-Cash Working Capital (NCWC) -27,729,000
Change in NCWC -15,428,000
EBIT 26,447,000
Tax Provision 9,750,000
Depreciation and Amortization 4,109,000
Capital Expenditure -2,939,000
Unlevered Free Cash Flow 2,764,356
Current Assets 53,188,000
Current Cash 40,042,000
Current Liabilities 27,926,000
Current Debt 2,479,000
Non-Cash Working Capital (NCWC) -12,301,000
Change in NCWC -5,363,000
EBIT 28,296,000
Tax Provision 9,936,000
Depreciation and Amortization 3,804,000
Capital Expenditure -2,492,000
Unlevered Free Cash Flow 14,236,846
Current Assets 36,474,000
Current Cash 22,092,000
Current Liabilities 23,690,000
Current Debt 2,370,000
Non-Cash Working Capital (NCWC) -6,938,000
Change in NCWC 293,000
EBIT 24,806,000
Tax Provision 9,004,000
Depreciation and Amortization 3,732,000
Capital Expenditure -2,188,000
Unlevered Free Cash Flow 17,522,074
Current Assets 23,815,000
Current Cash 8,286,000
Current Liabilities 35,298,000
Current Debt 12,538,000
Non-Cash Working Capital (NCWC) -7,231,000
Change in NCWC 1,252,000
EBIT 22,719,000
Tax Provision 7,139,000
Depreciation and Amortization 4,699,000
Capital Expenditure -2,348,000
Unlevered Free Cash Flow 19,018,404

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