DCF Tool

PETQ

PetIQ Inc – Drugs and Druggists' Sundries Merchant Wholesalers
petiq is founded with a love of pets and a desire to improve pet lives with veterinarian recommended pet products, made here in the usa. petiq offers pet prescription medications, over-the-counter flea & tick preventatives, health & wellness supplements, and dog & cat treats - at savings to other brand name alternatives. the company's portfolio of brands includes minties® dental treats, advecta® and petaction® flea and tick preventatives, vetiq® health & wellness, delightibles® cat treats, and betsy farms® dog treats. products are distributed nationally through traditional retail partners. petiq is headquartered in eagle, idaho with manufacturing and distribution facilities in springville, utah; plano, texas; and daytona beach, florida. to learn more, visit petiq.com.
Analysis Results
Intrinsic Value $259.41
Latest Price $15.93
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 46.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 46.8%, 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)
2024 134 124
2025 197 168
2026 289 228
2027 425 309
2028 624 420
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10200 million. This corresponds to a present value of 6330 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1250 million. Adding in the terminal value gives a total present value of 7570 million.

There are presently 29.2 million outstanding shares, so the intrinsic value per share is 259.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 430,834,000
Current Cash 116,369,000
Current Liabilities 189,529,000
Current Debt 8,595,000
Non-Cash Working Capital (NCWC) 133,531,000
Change in NCWC 5,423,000
EBIT 56,504,000
Tax Provision -173,000
Depreciation and Amortization 44,498,000
Capital Expenditure -9,145,000
Unlevered Free Cash Flow 97,280,000
Current Assets 370,112,000
Current Cash 101,265,000
Current Liabilities 149,490,000
Current Debt 8,751,000
Non-Cash Working Capital (NCWC) 128,108,000
Change in NCWC -1,423,000
EBIT 27,102,000
Tax Provision 1,214,000
Depreciation and Amortization 35,468,000
Capital Expenditure -11,973,000
Unlevered Free Cash Flow 49,174,000
Current Assets 298,689,000
Current Cash 79,406,000
Current Liabilities 98,102,000
Current Debt 8,350,000
Non-Cash Working Capital (NCWC) 129,531,000
Change in NCWC 13,995,000
EBIT 15,872,000
Tax Provision 3,869,000
Depreciation and Amortization 39,300,000
Capital Expenditure -31,270,000
Unlevered Free Cash Flow 37,897,000
Current Assets 242,296,000
Current Cash 33,456,000
Current Liabilities 101,067,000
Current Debt 7,763,000
Non-Cash Working Capital (NCWC) 115,536,000
Change in NCWC 26,578,000
EBIT -3,187,000
Tax Provision 52,216,000
Depreciation and Amortization 30,975,000
Capital Expenditure -22,392,000
Unlevered Free Cash Flow 31,974,000
Current Assets 185,423,000
Current Cash 27,272,000
Current Liabilities 73,014,000
Current Debt 3,821,000
Non-Cash Working Capital (NCWC) 88,958,000
Change in NCWC 9,542,000
EBIT 4,183,000
Tax Provision -3,309,000
Depreciation and Amortization 16,509,000
Capital Expenditure -10,276,000
Unlevered Free Cash Flow 19,958,000
Current Assets 207,721,000
Current Cash 66,360,000
Current Liabilities 64,196,000
Current Debt 2,251,000
Non-Cash Working Capital (NCWC) 79,416,000
Change in NCWC 26,477,000
EBIT 11,028,000
Tax Provision -661,000
Depreciation and Amortization 12,467,000
Capital Expenditure -7,178,000
Unlevered Free Cash Flow 42,794,000
Current Assets 108,875,000
Current Cash 37,896,000
Current Liabilities 18,191,000
Current Debt 151,000
Non-Cash Working Capital (NCWC) 52,939,000
Change in NCWC 7,923,000
EBIT 13,289,000
Tax Provision 3,970,000
Depreciation and Amortization 3,614,000
Capital Expenditure -4,131,000
Unlevered Free Cash Flow 16,219,108
Current Assets 56,537,000
Current Cash 767,000
Current Liabilities 13,075,000
Current Debt 2,321,000
Non-Cash Working Capital (NCWC) 45,016,000
Change in NCWC -1,040,000
EBIT 702,000
Tax Provision -756,000
Depreciation and Amortization 4,074,000
Capital Expenditure -2,041,000
Unlevered Free Cash Flow 1,695,000

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