DCF Tool

NWE

Northwestern Corp. – Electric Power Distribution
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and / or natural gas to approximately 734,800 customers in Montana, South Dakota and Nebraska. We have generated and distributed electricity in South Dakota and distributed natural gas in South Dakota and Nebraska since 1923 and have generated and distributed electricity and distributed natural gas in Montana since 2002.
Analysis Results
Intrinsic Value $295.01
Latest Price $60.63
Relative Value 79% 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 20.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.9%, 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 279 268
2023 337 312
2024 407 362
2025 492 421
2026 594 489
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 17800 million. This corresponds to a present value of 14100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1850 million. Adding in the terminal value gives a total present value of 16000 million.

There are presently 54.1 million outstanding shares, so the intrinsic value per share is 295.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 875,590,000
Current Cash 5,640,000
Current Liabilities 759,284,000
Current Debt 5,750,000
Non-Cash Working Capital (NCWC) 116,416,000
Change in NCWC 177,302,000
EBIT 551,362,000
Tax Provision 6,838,000
Depreciation and Amortization 374,934,000
Capital Expenditure -868,656,000
Unlevered Free Cash Flow 225,033,892
Current Assets 308,680,000
Current Cash 5,811,000
Current Liabilities 466,423,000
Current Debt 102,668,000
Non-Cash Working Capital (NCWC) -60,886,000
Change in NCWC -25,677,000
EBIT 236,204,000
Tax Provision -10,970,000
Depreciation and Amortization 179,644,000
Capital Expenditure -405,762,000
Unlevered Free Cash Flow -15,591,000
Current Assets 301,727,000
Current Cash 5,145,000
Current Liabilities 334,267,000
Current Debt 2,476,000
Non-Cash Working Capital (NCWC) -35,209,000
Change in NCWC 39,677,000
EBIT 276,850,000
Tax Provision -19,925,000
Depreciation and Amortization 172,923,000
Capital Expenditure -316,016,000
Unlevered Free Cash Flow 173,434,000
Current Assets 277,685,000
Current Cash 7,860,000
Current Liabilities 347,009,000
Current Debt 2,298,000
Non-Cash Working Capital (NCWC) -74,886,000
Change in NCWC -52,223,000
EBIT 266,272,000
Tax Provision -18,710,000
Depreciation and Amortization 174,476,000
Capital Expenditure -283,966,000
Unlevered Free Cash Flow 104,559,000
Current Assets 296,359,000
Current Cash 8,473,000
Current Liabilities 632,238,000
Current Debt 321,689,000
Non-Cash Working Capital (NCWC) -22,663,000
Change in NCWC 13,263,000
EBIT 261,415,000
Tax Provision 13,368,000
Depreciation and Amortization 166,137,000
Capital Expenditure -276,438,000
Unlevered Free Cash Flow 144,529,349
Current Assets 280,195,000
Current Cash 5,079,000
Current Liabilities 613,832,000
Current Debt 302,790,000
Non-Cash Working Capital (NCWC) -35,926,000
Change in NCWC 28,883,000
EBIT 245,947,000
Tax Provision -7,647,000
Depreciation and Amortization 159,336,000
Capital Expenditure -287,901,000
Unlevered Free Cash Flow 146,265,000
Current Assets 286,660,000
Current Cash 11,980,000
Current Liabilities 571,200,000
Current Debt 231,711,000
Non-Cash Working Capital (NCWC) -64,809,000
Change in NCWC -50,320,000
EBIT 265,816,000
Tax Provision 30,037,000
Depreciation and Amortization 144,702,000
Capital Expenditure -283,705,000
Unlevered Free Cash Flow 32,440,633
Current Assets 350,885,000
Current Cash 20,362,000
Current Liabilities 614,582,000
Current Debt 269,570,000
Non-Cash Working Capital (NCWC) -14,489,000
Change in NCWC 2,088,000
EBIT 178,018,000
Tax Provision -10,272,000
Depreciation and Amortization 123,776,000
Capital Expenditure -270,384,000
Unlevered Free Cash Flow 33,498,000
Current Assets 320,956,000
Current Cash 16,557,000
Current Liabilities 463,588,000
Current Debt 142,612,000
Non-Cash Working Capital (NCWC) -16,577,000
Change in NCWC 14,836,000
EBIT 171,033,000
Tax Provision 14,301,000
Depreciation and Amortization 112,831,000
Capital Expenditure -230,454,000
Unlevered Free Cash Flow 45,657,778
Current Assets 303,128,000
Current Cash 9,822,000
Current Liabilities 449,265,000
Current Debt 124,546,000
Non-Cash Working Capital (NCWC) -31,413,000
Change in NCWC -11,826,000
EBIT 201,224,000
Tax Provision 18,089,000
Depreciation and Amortization 106,044,000
Capital Expenditure -219,234,000
Unlevered Free Cash Flow 44,962,530

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.