DCF Tool

NVT

nVent Electric plc – Electronic Connector Manufacturing
nVent is a leading global provider of electrical connection and protection solutions. The Company believes its inventive electrical solutions enable safer systems and ensure a more secure world. It designs, manufactures, markets, installs and services high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. The Company offers a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Its principal office is in London and its management office in the United States is in Minneapolis. Its robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER.
Analysis Results
Intrinsic Value $56.15
Latest Price $35.59
Relative Value 37% 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 13.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.4%, 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 431 398
2023 489 417
2024 554 436
2025 629 457
2026 713 479
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11600 million. This corresponds to a present value of 7160 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2190 million. Adding in the terminal value gives a total present value of 9350 million.

There are presently 166.0 million outstanding shares, so the intrinsic value per share is 56.15.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 911,500,000
Current Cash 49,500,000
Current Liabilities 636,300,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 230,700,000
Change in NCWC 18,800,000
EBIT 355,400,000
Tax Provision 47,800,000
Depreciation and Amortization 108,400,000
Capital Expenditure -39,500,000
Unlevered Free Cash Flow 390,128,001
Current Assets 764,400,000
Current Cash 122,500,000
Current Liabilities 450,000,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 211,900,000
Change in NCWC -35,700,000
EBIT 258,900,000
Tax Provision 37,700,000
Depreciation and Amortization 102,600,000
Capital Expenditure -40,000,000
Unlevered Free Cash Flow 285,800,000
Current Assets 798,700,000
Current Cash 106,400,000
Current Liabilities 462,200,000
Current Debt 17,500,000
Non-Cash Working Capital (NCWC) 247,600,000
Change in NCWC 9,300,000
EBIT 333,100,000
Tax Provision 34,700,000
Depreciation and Amortization 96,800,000
Capital Expenditure -38,800,000
Unlevered Free Cash Flow 355,494,910
Current Assets 846,500,000
Current Cash 159,000,000
Current Liabilities 461,700,000
Current Debt 12,500,000
Non-Cash Working Capital (NCWC) 238,300,000
Change in NCWC -76,500,000
EBIT 310,800,000
Tax Provision 37,900,000
Depreciation and Amortization 97,100,000
Capital Expenditure -39,500,000
Unlevered Free Cash Flow 248,061,816

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