DCF Tool

PGTI

PGT Innovations Inc – Metal Window and Door Manufacturing
PGT Innovations manufactures and supplies premium windows and doors. Its highly-engineered and technically-advanced products can withstand some of the toughest weather conditions on earth and unify indoor/outdoor living spaces. PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves and a drive to develop category-defining products. PGT Innovations is also the nation's largest manufacturer of impact-resistant windows and doors, holds the leadership position in its primary markets, and is part of the S&P SmallCap 400 Index.
Analysis Results
Intrinsic Value $172.81
Latest Price $17.72
Relative Value 90% 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 32.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.0%, 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)
2022 223 208
2023 294 256
2024 388 315
2025 512 388
2026 676 477
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 13200 million. This corresponds to a present value of 8710 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1640 million. Adding in the terminal value gives a total present value of 10400 million.

There are presently 59.9 million outstanding shares, so the intrinsic value per share is 172.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 421,758,000
Current Cash 96,146,000
Current Liabilities 135,861,000
Current Debt 0
Non-Cash Working Capital (NCWC) 189,751,000
Change in NCWC 78,875,000
EBIT 100,456,000
Tax Provision 9,759,000
Depreciation and Amortization 51,569,000
Capital Expenditure -33,424,000
Unlevered Free Cash Flow 175,668,634
Current Assets 301,672,000
Current Cash 100,320,000
Current Liabilities 90,476,000
Current Debt 0
Non-Cash Working Capital (NCWC) 110,876,000
Change in NCWC 30,606,000
EBIT 96,938,000
Tax Provision 11,884,000
Depreciation and Amortization 42,839,000
Capital Expenditure -24,800,000
Unlevered Free Cash Flow 125,369,440
Current Assets 233,610,000
Current Cash 97,243,000
Current Liabilities 56,097,000
Current Debt 0
Non-Cash Working Capital (NCWC) 80,270,000
Change in NCWC 5,916,000
EBIT 84,056,000
Tax Provision 12,439,000
Depreciation and Amortization 34,732,000
Capital Expenditure -31,268,000
Unlevered Free Cash Flow 74,807,308
Current Assets 195,561,000
Current Cash 52,650,000
Current Liabilities 68,720,000
Current Debt 163,000
Non-Cash Working Capital (NCWC) 74,354,000
Change in NCWC 4,952,000
EBIT 92,558,000
Tax Provision 11,272,000
Depreciation and Amortization 24,450,000
Capital Expenditure -29,769,000
Unlevered Free Cash Flow 76,190,482
Current Assets 144,516,000
Current Cash 34,029,000
Current Liabilities 41,379,000
Current Debt 294,000
Non-Cash Working Capital (NCWC) 69,402,000
Change in NCWC 9,038,000
EBIT 60,181,000
Tax Provision 63,000
Depreciation and Amortization 19,528,000
Capital Expenditure -32,547,000
Unlevered Free Cash Flow 56,104,982
Current Assets 122,377,000
Current Cash 39,210,000
Current Liabilities 22,803,000
Current Debt 0
Non-Cash Working Capital (NCWC) 60,364,000
Change in NCWC 14,446,000
EBIT 56,103,000
Tax Provision 11,800,000
Depreciation and Amortization 15,673,000
Capital Expenditure -17,694,000
Unlevered Free Cash Flow 49,904,335
Current Assets 126,989,000
Current Cash 61,493,000
Current Liabilities 21,544,000
Current Debt 1,966,000
Non-Cash Working Capital (NCWC) 45,918,000
Change in NCWC 6,278,000
EBIT 50,942,000
Tax Provision 15,297,000
Depreciation and Amortization 10,421,000
Capital Expenditure -17,391,000
Unlevered Free Cash Flow 30,191,317
Current Assets 99,437,000
Current Cash 42,469,000
Current Liabilities 19,290,000
Current Debt 1,962,000
Non-Cash Working Capital (NCWC) 39,640,000
Change in NCWC 13,966,000
EBIT 36,415,000
Tax Provision 9,675,000
Depreciation and Amortization 5,980,000
Capital Expenditure -19,301,000
Unlevered Free Cash Flow 23,550,984
Current Assets 71,400,000
Current Cash 30,204,000
Current Liabilities 20,412,000
Current Debt 4,890,000
Non-Cash Working Capital (NCWC) 25,674,000
Change in NCWC 4,412,000
EBIT 25,540,000
Tax Provision -3,374,000
Depreciation and Amortization 11,080,000
Capital Expenditure -7,550,000
Unlevered Free Cash Flow 33,482,000
Current Assets 53,330,000
Current Cash 18,743,000
Current Liabilities 13,325,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,262,000
Change in NCWC 4,794,000
EBIT 12,574,000
Tax Provision 110,000
Depreciation and Amortization 12,233,000
Capital Expenditure -3,792,000
Unlevered Free Cash Flow 25,656,419

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