DCF Tool

PATK

Patrick Industries, Inc. – Wood Kitchen Cabinet and Countertop Manufacturing
patrick industries was founded in 1959 and is the leading manufacturer of building products and materials to the manufactured housing and recreational vehicle industries in the united states. the company also supplies many of its products to the industrial market that include customers in the kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, architectural and the automotive aftermarket. in addition, patrick industries is an independent wholesale distributor for the manufactured housing and recreational vehicle industries supplying pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, cabinet doors and cabinet components, cement siding, interior passage doors, furniture, roofing products, lighting, flooring, electrical, wiring, plumbing and other related products.
Analysis Results
Intrinsic Value $1,618.34
Latest Price $75.88
Relative Value 95% 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 34.0%.

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 34.0%, 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)
2023 0.718 0.67
2024 0.962 0.838
2025 1.29 1.05
2026 1.73 1.31
2027 2.32 1.64
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 46.0 billion. This corresponds to a present value of 30.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.51 billion. Adding in the terminal value gives a total present value of 35.9 billion.

There are presently 22.2 million outstanding shares, so the intrinsic value per share is 1618.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 909,904,000
Current Cash 22,847,000
Current Liabilities 367,240,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 527,317,000
Change in NCWC 101,368,000
EBIT 496,170,000
Tax Provision 107,214,000
Depreciation and Amortization 130,757,000
Capital Expenditure -79,883,000
Unlevered Free Cash Flow 526,236,647
Current Assets 974,075,000
Current Cash 122,849,000
Current Liabilities 432,777,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 425,949,000
Change in NCWC 162,542,000
EBIT 351,712,000
Tax Provision 68,907,000
Depreciation and Amortization 104,808,000
Capital Expenditure -64,804,000
Unlevered Free Cash Flow 471,774,663
Current Assets 528,063,000
Current Cash 44,767,000
Current Liabilities 227,389,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 263,407,000
Change in NCWC 67,898,000
EBIT 173,373,000
Tax Provision 33,311,000
Depreciation and Amortization 73,270,000
Capital Expenditure -32,100,000
Unlevered Free Cash Flow 238,142,929
Current Assets 516,834,000
Current Cash 139,390,000
Current Liabilities 186,935,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 195,509,000
Change in NCWC -33,758,000
EBIT 154,442,000
Tax Provision 28,260,000
Depreciation and Amortization 62,795,000
Capital Expenditure -27,661,000
Unlevered Free Cash Flow 118,775,828
Current Assets 385,167,000
Current Cash 6,895,000
Current Liabilities 157,755,000
Current Debt 8,750,000
Non-Cash Working Capital (NCWC) 229,267,000
Change in NCWC 78,740,000
EBIT 178,415,000
Tax Provision 32,147,000
Depreciation and Amortization 55,052,000
Capital Expenditure -34,486,000
Unlevered Free Cash Flow 239,982,187
Current Assets 273,953,000
Current Cash 2,767,000
Current Liabilities 136,425,000
Current Debt 15,766,000
Non-Cash Working Capital (NCWC) 150,527,000
Change in NCWC 54,534,000
EBIT 121,900,000
Tax Provision 27,392,000
Depreciation and Amortization 33,541,000
Capital Expenditure -22,497,000
Unlevered Free Cash Flow 157,957,313
Current Assets 172,769,000
Current Cash 6,449,000
Current Liabilities 86,093,000
Current Debt 15,766,000
Non-Cash Working Capital (NCWC) 95,993,000
Change in NCWC 3,554,000
EBIT 90,837,000
Tax Provision 28,075,000
Depreciation and Amortization 24,362,000
Capital Expenditure -15,406,000
Unlevered Free Cash Flow 72,860,594
Current Assets 139,738,000
Current Cash 87,000
Current Liabilities 57,926,000
Current Debt 10,714,000
Non-Cash Working Capital (NCWC) 92,439,000
Change in NCWC 22,908,000
EBIT 69,969,000
Tax Provision 23,380,000
Depreciation and Amortization 16,775,000
Capital Expenditure -7,958,000
Unlevered Free Cash Flow 76,756,497
Current Assets 114,796,000
Current Cash 123,000
Current Liabilities 45,142,000
Current Debt 0
Non-Cash Working Capital (NCWC) 69,531,000
Change in NCWC 14,277,000
EBIT 51,501,000
Tax Provision 18,404,000
Depreciation and Amortization 10,433,000
Capital Expenditure -6,542,000
Unlevered Free Cash Flow 50,356,387
Current Assets 87,699,000
Current Cash 34,000
Current Liabilities 32,411,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,254,000
Change in NCWC 11,170,000
EBIT 40,515,000
Tax Provision 14,734,000
Depreciation and Amortization 7,297,000
Capital Expenditure -8,669,000
Unlevered Free Cash Flow 34,917,425
Current Assets 73,670,000
Current Cash 434,000
Current Liabilities 29,152,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,084,000
Change in NCWC 19,099,000
EBIT 26,802,000
Tax Provision -6,823,000
Depreciation and Amortization 5,586,000
Capital Expenditure -7,895,000
Unlevered Free Cash Flow 43,592,000

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