DCF Tool

OLN

Olin Corp. – Other Chemical and Allied Products Merchant Wholesalers
Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
Analysis Results
Intrinsic Value $168.89
Latest Price $58.24
Relative Value 66% undervalued
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Cash Flow (Billions)
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 8.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.0%, 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 (billion) Present value (billion)
2022 0.682 0.651
2023 0.736 0.671
2024 0.795 0.692
2025 0.858 0.713
2026 0.927 0.735
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 27.8 billion. This corresponds to a present value of 21.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.46 billion. Adding in the terminal value gives a total present value of 24.5 billion.

There are presently 145.0 million outstanding shares, so the intrinsic value per share is 168.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,248,300,000
Current Cash 180,500,000
Current Liabilities 1,682,100,000
Current Debt 201,100,000
Non-Cash Working Capital (NCWC) 586,800,000
Change in NCWC 232,000,000
EBIT 1,877,300,000
Tax Provision 242,000,000
Depreciation and Amortization 582,500,000
Capital Expenditure -200,600,000
Unlevered Free Cash Flow 2,195,946,474
Current Assets 1,717,100,000
Current Cash 189,700,000
Current Liabilities 1,198,900,000
Current Debt 26,300,000
Non-Cash Working Capital (NCWC) 354,800,000
Change in NCWC -58,200,000
EBIT -38,600,000
Tax Provision -50,100,000
Depreciation and Amortization 568,400,000
Capital Expenditure -298,900,000
Unlevered Free Cash Flow 172,700,000
Current Assets 1,714,000,000
Current Cash 220,900,000
Current Liabilities 1,082,200,000
Current Debt 2,100,000
Non-Cash Working Capital (NCWC) 413,000,000
Change in NCWC -123,200,000
EBIT 253,900,000
Tax Provision -25,600,000
Depreciation and Amortization 597,400,000
Capital Expenditure -385,600,000
Unlevered Free Cash Flow 342,500,000
Current Assets 1,707,400,000
Current Cash 178,800,000
Current Liabilities 1,118,300,000
Current Debt 125,900,000
Non-Cash Working Capital (NCWC) 536,200,000
Change in NCWC 9,000,000
EBIT 673,700,000
Tax Provision 109,400,000
Depreciation and Amortization 601,400,000
Capital Expenditure -385,200,000
Unlevered Free Cash Flow 730,359,455
Current Assets 1,699,200,000
Current Cash 218,400,000
Current Liabilities 954,300,000
Current Debt 700,000
Non-Cash Working Capital (NCWC) 527,200,000
Change in NCWC 7,600,000
EBIT 379,900,000
Tax Provision -432,300,000
Depreciation and Amortization 558,900,000
Capital Expenditure -294,300,000
Unlevered Free Cash Flow 652,100,000
Current Assets 1,546,200,000
Current Cash 184,500,000
Current Liabilities 922,600,000
Current Debt 80,500,000
Non-Cash Working Capital (NCWC) 519,600,000
Change in NCWC -80,600,000
EBIT 305,400,000
Tax Provision -30,300,000
Depreciation and Amortization 533,500,000
Capital Expenditure -278,000,000
Unlevered Free Cash Flow 480,300,000
Current Assets 1,933,400,000
Current Cash 392,000,000
Current Liabilities 1,147,700,000
Current Debt 206,500,000
Non-Cash Working Capital (NCWC) 600,200,000
Change in NCWC 402,200,000
EBIT 182,800,000
Tax Provision 8,100,000
Depreciation and Amortization 228,900,000
Capital Expenditure -130,900,000
Unlevered Free Cash Flow 674,900,000
Current Assets 816,100,000
Current Cash 256,800,000
Current Liabilities 377,700,000
Current Debt 16,400,000
Non-Cash Working Capital (NCWC) 198,000,000
Change in NCWC 60,800,000
EBIT 219,300,000
Tax Provision 57,700,000
Depreciation and Amortization 139,100,000
Capital Expenditure -71,800,000
Unlevered Free Cash Flow 269,627,350
Current Assets 839,900,000
Current Cash 307,800,000
Current Liabilities 407,500,000
Current Debt 12,600,000
Non-Cash Working Capital (NCWC) 137,200,000
Change in NCWC -36,300,000
EBIT 294,100,000
Tax Provision 71,400,000
Depreciation and Amortization 135,300,000
Capital Expenditure -90,800,000
Unlevered Free Cash Flow 218,305,040
Current Assets 749,100,000
Current Cash 165,200,000
Current Liabilities 434,000,000
Current Debt 23,600,000
Non-Cash Working Capital (NCWC) 173,500,000
Change in NCWC 84,900,000
EBIT 271,100,000
Tax Provision 75,600,000
Depreciation and Amortization 110,900,000
Capital Expenditure -255,700,000
Unlevered Free Cash Flow 120,191,296

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