DCF Tool

PBH

Prestige Consumer Healthcare Inc – Pharmaceutical Preparation Manufacturing
Prestige Consumer Healthcare markets, sells, manufactures and distributes consumer healthcare products to retail outlets throughout the U.S. and Canada, Australia, and in certain other international markets. The Company's diverse portfolio of brands include Monistat® and Summer's Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux's Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia.
Analysis Results
Intrinsic Value $211.28
Latest Price $59.58
Relative Value 72% 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 7.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.0%, 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 (million) Present value (million)
2023 304 290
2024 325 296
2025 348 303
2026 373 309
2027 399 316
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 12000 million. This corresponds to a present value of 9030 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1510 million. Adding in the terminal value gives a total present value of 10500 million.

There are presently 49.9 million outstanding shares, so the intrinsic value per share is 211.28.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 293,267,000
Current Cash 27,185,000
Current Liabilities 143,422,000
Current Debt 2,752,000
Non-Cash Working Capital (NCWC) 125,412,000
Change in NCWC 7,429,000
EBIT 329,919,000
Tax Provision 57,077,000
Depreciation and Amortization 32,092,000
Capital Expenditure -9,642,000
Unlevered Free Cash Flow 288,050,189
Current Assets 269,835,000
Current Cash 32,302,000
Current Liabilities 122,138,000
Current Debt 2,588,000
Non-Cash Working Capital (NCWC) 117,983,000
Change in NCWC -4,250,000
EBIT 297,402,000
Tax Provision 39,431,000
Depreciation and Amortization 30,164,000
Capital Expenditure -22,243,000
Unlevered Free Cash Flow 243,620,225
Current Assets 365,654,000
Current Cash 94,760,000
Current Liabilities 149,881,000
Current Debt 1,220,000
Non-Cash Working Capital (NCWC) 122,233,000
Change in NCWC -24,196,000
EBIT 291,155,000
Tax Provision 48,870,000
Depreciation and Amortization 28,995,000
Capital Expenditure -14,560,000
Unlevered Free Cash Flow 206,956,801
Current Assets 300,938,000
Current Cash 27,530,000
Current Liabilities 126,979,000
Current Debt 0
Non-Cash Working Capital (NCWC) 146,429,000
Change in NCWC -1,301,000
EBIT 295,680,000
Tax Provision -2,255,000
Depreciation and Amortization 31,779,000
Capital Expenditure -10,480,000
Unlevered Free Cash Flow 315,678,000
Current Assets 303,477,000
Current Cash 32,548,000
Current Liabilities 123,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) 147,730,000
Change in NCWC 17,160,000
EBIT 315,790,000
Tax Provision -232,484,000
Depreciation and Amortization 33,426,000
Capital Expenditure -12,532,000
Unlevered Free Cash Flow 353,844,000
Current Assets 334,434,000
Current Cash 41,855,000
Current Liabilities 162,009,000
Current Debt 0
Non-Cash Working Capital (NCWC) 130,570,000
Change in NCWC 15,471,000
EBIT 257,433,000
Tax Provision 41,455,000
Depreciation and Amortization 25,792,000
Capital Expenditure -2,977,000
Unlevered Free Cash Flow 199,445,792
Current Assets 249,013,000
Current Cash 27,230,000
Current Liabilities 106,684,000
Current Debt 0
Non-Cash Working Capital (NCWC) 115,099,000
Change in NCWC 33,747,000
EBIT 260,315,000
Tax Provision 57,278,000
Depreciation and Amortization 23,676,000
Capital Expenditure -3,568,000
Unlevered Free Cash Flow 219,311,568
Current Assets 201,707,000
Current Cash 21,318,000
Current Liabilities 99,037,000
Current Debt 0
Non-Cash Working Capital (NCWC) 81,352,000
Change in NCWC 16,856,000
EBIT 207,559,000
Tax Provision 49,198,000
Depreciation and Amortization 17,740,000
Capital Expenditure -6,101,000
Unlevered Free Cash Flow 155,937,509
Current Assets 177,185,000
Current Cash 28,331,000
Current Liabilities 84,358,000
Current Debt 0
Non-Cash Working Capital (NCWC) 64,496,000
Change in NCWC 12,661,000
EBIT 188,616,000
Tax Provision 29,133,000
Depreciation and Amortization 13,486,000
Capital Expenditure -2,764,000
Unlevered Free Cash Flow 157,993,516
Current Assets 164,173,000
Current Cash 15,670,000
Current Liabilities 96,668,000
Current Debt 0
Non-Cash Working Capital (NCWC) 51,835,000
Change in NCWC -12,262,000
EBIT 191,884,000
Tax Provision 40,529,000
Depreciation and Amortization 13,235,000
Capital Expenditure -10,268,000
Unlevered Free Cash Flow 109,245,858

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