DCF Tool

PDEX

Pro-Dex Inc. (co) – Surgical and Medical Instrument Manufacturing
Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. It has patented adoptive torque-limiting software and proprietary sealing solutions which appeal to its customers, primarily medical device distributors. Pro-Dex also sells rotary air motors to a wide range of industries. Pro-Dex's products are found in hospitals and medical engineering labs around the world.
Analysis Results
Intrinsic Value $243.42
Latest Price $15.62
Relative Value 94% 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 28.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 28.3%, 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 11.9 11.5
2024 15.3 14.3
2025 19.6 17.7
2026 25.2 21.9
2027 32.3 27.2
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 970 million. This corresponds to a present value of 788 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 92.7 million. Adding in the terminal value gives a total present value of 881 million.

There are presently 3.62 million outstanding shares, so the intrinsic value per share is 243.42.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 31,166,000
Current Cash 1,604,000
Current Liabilities 11,354,000
Current Debt 3,285,000
Non-Cash Working Capital (NCWC) 21,493,000
Change in NCWC 6,132,000
EBIT 5,158,000
Tax Provision 851,000
Depreciation and Amortization 726,000
Capital Expenditure -1,671,000
Unlevered Free Cash Flow 9,412,263
Current Assets 25,013,000
Current Cash 5,016,000
Current Liabilities 5,872,000
Current Debt 1,236,000
Non-Cash Working Capital (NCWC) 15,361,000
Change in NCWC 6,244,000
EBIT 4,525,000
Tax Provision 1,176,000
Depreciation and Amortization 686,000
Capital Expenditure -8,268,000
Unlevered Free Cash Flow 2,241,141
Current Assets 22,674,000
Current Cash 8,981,000
Current Liabilities 5,227,000
Current Debt 651,000
Non-Cash Working Capital (NCWC) 9,117,000
Change in NCWC 1,373,000
EBIT 7,061,000
Tax Provision 1,790,000
Depreciation and Amortization 573,000
Capital Expenditure -519,000
Unlevered Free Cash Flow 6,888,507
Current Assets 21,783,000
Current Cash 10,391,000
Current Liabilities 4,270,000
Current Debt 622,000
Non-Cash Working Capital (NCWC) 7,744,000
Change in NCWC 1,422,000
EBIT 4,991,000
Tax Provision 1,299,000
Depreciation and Amortization 438,000
Capital Expenditure -1,387,000
Unlevered Free Cash Flow 4,273,746
Current Assets 16,233,000
Current Cash 7,408,000
Current Liabilities 2,538,000
Current Debt 35,000
Non-Cash Working Capital (NCWC) 6,322,000
Change in NCWC 1,846,000
EBIT 3,405,000
Tax Provision 989,000
Depreciation and Amortization 557,000
Capital Expenditure -923,000
Unlevered Free Cash Flow 3,594,752
Current Assets 11,921,000
Current Cash 4,923,000
Current Liabilities 2,580,000
Current Debt 58,000
Non-Cash Working Capital (NCWC) 4,476,000
Change in NCWC -397,000
EBIT 2,847,000
Tax Provision -2,089,000
Depreciation and Amortization 555,000
Capital Expenditure -638,000
Unlevered Free Cash Flow 2,367,000
Current Assets 9,218,000
Current Cash 2,294,000
Current Liabilities 2,077,000
Current Debt 26,000
Non-Cash Working Capital (NCWC) 4,873,000
Change in NCWC 825,000
EBIT 771,000
Tax Provision 25,000
Depreciation and Amortization 614,000
Capital Expenditure -335,000
Unlevered Free Cash Flow 1,852,243
Current Assets 8,408,000
Current Cash 697,000
Current Liabilities 3,694,000
Current Debt 31,000
Non-Cash Working Capital (NCWC) 4,048,000
Change in NCWC 462,000
EBIT -902,000
Tax Provision -44,000
Depreciation and Amortization 578,000
Capital Expenditure -244,000
Unlevered Free Cash Flow -106,000
Current Assets 8,893,000
Current Cash 3,188,000
Current Liabilities 2,127,000
Current Debt 8,000
Non-Cash Working Capital (NCWC) 3,586,000
Change in NCWC 228,000
EBIT -814,000
Tax Provision -104,000
Depreciation and Amortization 527,000
Capital Expenditure -155,000
Unlevered Free Cash Flow -214,000
Current Assets 7,347,000
Current Cash 1,680,000
Current Liabilities 2,314,000
Current Debt 5,000
Non-Cash Working Capital (NCWC) 3,358,000
Change in NCWC 78,000
EBIT -1,895,000
Tax Provision -39,000
Depreciation and Amortization 582,000
Capital Expenditure -86,000
Unlevered Free Cash Flow -1,321,000
Current Assets 9,497,000
Current Cash 4,112,000
Current Liabilities 2,879,000
Current Debt 774,000
Non-Cash Working Capital (NCWC) 3,280,000
Change in NCWC -207,000
EBIT -1,365,000
Tax Provision -441,000
Depreciation and Amortization 647,000
Capital Expenditure -341,000
Unlevered Free Cash Flow -1,266,000

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