DCF Tool

OFLX

Omega Flex Inc – Fabricated Pipe and Pipe Fitting Manufacturing
Omeega Flex since 1975, supplying quality engineered flexible metal hose products that meet demanding industrial, commercial and residential applications requiring engineering innovation and experience
Analysis Results
Intrinsic Value $82.03
Latest Price $102.20
Relative Value 25% 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 16.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.2%, 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 33.3 30.9
2023 38.7 33.2
2024 45.0 35.7
2025 52.3 38.4
2026 60.8 41.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1030 million. This corresponds to a present value of 648 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 179 million. Adding in the terminal value gives a total present value of 828 million.

There are presently 10.1 million outstanding shares, so the intrinsic value per share is 82.03.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 71,737,000
Current Cash 32,913,000
Current Liabilities 22,794,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,030,000
Change in NCWC 4,177,000
EBIT 35,062,000
Tax Provision 8,862,000
Depreciation and Amortization 1,020,000
Capital Expenditure -971,000
Unlevered Free Cash Flow 30,440,131
Current Assets 57,357,000
Current Cash 23,633,000
Current Liabilities 21,871,000
Current Debt 0
Non-Cash Working Capital (NCWC) 11,853,000
Change in NCWC 2,115,000
EBIT 26,653,000
Tax Provision 6,594,000
Depreciation and Amortization 870,000
Capital Expenditure -564,000
Unlevered Free Cash Flow 22,457,160
Current Assets 46,320,000
Current Cash 16,098,000
Current Liabilities 20,484,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,738,000
Change in NCWC 1,857,000
EBIT 21,922,000
Tax Provision 5,429,000
Depreciation and Amortization 719,000
Capital Expenditure -1,225,000
Unlevered Free Cash Flow 18,065,397
Current Assets 73,622,000
Current Cash 47,336,000
Current Liabilities 18,405,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,881,000
Change in NCWC 447,000
EBIT 26,366,000
Tax Provision 6,451,000
Depreciation and Amortization 543,000
Capital Expenditure -1,924,000
Unlevered Free Cash Flow 19,068,371
Current Assets 63,476,000
Current Cash 37,938,000
Current Liabilities 18,104,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,434,000
Change in NCWC 5,811,000
EBIT 24,217,000
Tax Provision 8,450,000
Depreciation and Amortization 502,000
Capital Expenditure -3,093,000
Unlevered Free Cash Flow 19,014,475
Current Assets 59,676,000
Current Cash 35,318,000
Current Liabilities 22,735,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,623,000
Change in NCWC -1,364,000
EBIT 21,897,000
Tax Provision 6,975,000
Depreciation and Amortization 459,000
Capital Expenditure -233,000
Unlevered Free Cash Flow 13,662,137
Current Assets 56,691,000
Current Cash 30,152,000
Current Liabilities 23,552,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,987,000
Change in NCWC -1,175,000
EBIT 23,503,000
Tax Provision 7,603,000
Depreciation and Amortization 460,000
Capital Expenditure -620,000
Unlevered Free Cash Flow 14,584,681
Current Assets 45,765,000
Current Cash 22,585,000
Current Liabilities 19,018,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,162,000
Change in NCWC -5,214,000
EBIT 20,645,000
Tax Provision 6,994,000
Depreciation and Amortization 486,000
Capital Expenditure -215,000
Unlevered Free Cash Flow 8,692,381
Current Assets 30,183,000
Current Cash 8,257,000
Current Liabilities 12,550,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,376,000
Change in NCWC -933,000
EBIT 15,048,000
Tax Provision 4,891,000
Depreciation and Amortization 547,000
Capital Expenditure -487,000
Unlevered Free Cash Flow 9,262,781
Current Assets 22,454,000
Current Cash 939,000
Current Liabilities 11,530,000
Current Debt 324,000
Non-Cash Working Capital (NCWC) 10,309,000
Change in NCWC -432,000
EBIT 6,047,000
Tax Provision 4,046,000
Depreciation and Amortization 588,000
Capital Expenditure -130,000
Unlevered Free Cash Flow 3,821,167

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