DCF Tool

NUVA

Nuvasive Inc – Surgical and Medical Instrument Manufacturing
NuVasive, Inc. is the leader in spine technology innovation, focused on transforming spine surgery and beyond with minimally disruptive, procedurally integrated solutions designed to deliver reproducible and clinically-proven surgical outcomes. The Company's portfolio includes access instruments, implantable hardware, biologics, software systems for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative monitoring service offerings. With over $1 billion in revenues, NuVasive has an approximate 2,400-person workforce in more than 40 countries serving surgeons, hospitals and patients.
Analysis Results
Intrinsic Value $42.62
Latest Price $39.97
Relative Value 6% 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 3.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.4%, 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 115 107
2023 119 103
2024 123 99.8
2025 127 96.3
2026 131 92.9
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2600 million. This corresponds to a present value of 1720 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 500 million. Adding in the terminal value gives a total present value of 2220 million.

There are presently 52.1 million outstanding shares, so the intrinsic value per share is 42.62.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 802,424,000
Current Cash 246,091,000
Current Liabilities 200,891,000
Current Debt 0
Non-Cash Working Capital (NCWC) 355,442,000
Change in NCWC 14,331,000
EBIT 56,690,000
Tax Provision 5,702,000
Depreciation and Amortization 149,524,000
Capital Expenditure -112,456,000
Unlevered Free Cash Flow 108,089,000
Current Assets 1,562,184,000
Current Cash 1,030,014,000
Current Liabilities 836,362,000
Current Debt 645,303,000
Non-Cash Working Capital (NCWC) 341,111,000
Change in NCWC -3,274,000
EBIT 50,192,000
Tax Provision -10,392,000
Depreciation and Amortization 140,937,000
Capital Expenditure -109,589,000
Unlevered Free Cash Flow 78,266,000
Current Assets 764,336,000
Current Cash 213,034,000
Current Liabilities 206,917,000
Current Debt 0
Non-Cash Working Capital (NCWC) 344,385,000
Change in NCWC 23,476,000
EBIT 121,055,000
Tax Provision 15,283,000
Depreciation and Amortization 135,593,000
Capital Expenditure -130,384,000
Unlevered Free Cash Flow 126,762,447
Current Assets 618,209,000
Current Cash 117,840,000
Current Liabilities 179,460,000
Current Debt 0
Non-Cash Working Capital (NCWC) 320,909,000
Change in NCWC -4,610,000
EBIT 102,354,000
Tax Provision -3,756,000
Depreciation and Amortization 129,765,000
Capital Expenditure -109,603,000
Unlevered Free Cash Flow 117,906,000
Current Assets 558,990,000
Current Cash 72,803,000
Current Liabilities 160,668,000
Current Debt 0
Non-Cash Working Capital (NCWC) 325,519,000
Change in NCWC 84,515,000
EBIT 122,135,000
Tax Provision -7,038,000
Depreciation and Amortization 121,176,000
Capital Expenditure -112,491,000
Unlevered Free Cash Flow 215,335,000
Current Assets 575,443,000
Current Cash 153,643,000
Current Liabilities 242,497,000
Current Debt 61,701,000
Non-Cash Working Capital (NCWC) 241,004,000
Change in NCWC -4,444,000
EBIT 98,355,000
Tax Provision 29,282,000
Depreciation and Amortization 102,713,000
Capital Expenditure -94,290,000
Unlevered Free Cash Flow 57,825,884
Current Assets 702,827,000
Current Cash 357,762,000
Current Liabilities 99,617,000
Current Debt 0
Non-Cash Working Capital (NCWC) 245,448,000
Change in NCWC 117,192,000
EBIT 103,737,000
Tax Provision 46,729,000
Depreciation and Amortization 65,915,000
Capital Expenditure -107,792,000
Unlevered Free Cash Flow 135,777,856
Current Assets 705,871,000
Current Cash 362,716,000
Current Liabilities 214,899,000
Current Debt 0
Non-Cash Working Capital (NCWC) 128,256,000
Change in NCWC -44,326,000
EBIT 58,852,000
Tax Provision 6,286,000
Depreciation and Amortization 65,837,000
Capital Expenditure -58,424,000
Unlevered Free Cash Flow 21,939,000
Current Assets 536,008,000
Current Cash 246,274,000
Current Liabilities 117,152,000
Current Debt 0
Non-Cash Working Capital (NCWC) 172,582,000
Change in NCWC 10,501,000
EBIT 33,090,000
Tax Provision 2,783,000
Depreciation and Amortization 63,106,000
Capital Expenditure -47,597,000
Unlevered Free Cash Flow 49,672,331
Current Assets 513,749,000
Current Cash 261,704,000
Current Liabilities 164,275,000
Current Debt 74,311,000
Non-Cash Working Capital (NCWC) 162,081,000
Change in NCWC 87,344,000
EBIT 46,704,000
Tax Provision 8,814,000
Depreciation and Amortization 51,909,000
Capital Expenditure -41,189,000
Unlevered Free Cash Flow 108,196,477

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