DCF Tool


Douglas Dynamics Inc – Heavy Duty Truck Manufacturing
headquartered in milwaukee, wisconsin, douglas dynamics designs, manufactures and sells snow and ice control equipment for light trucks, which is comprised of snowplows and sand and salt spreaders, and related parts and accessories. the company is also a leading manufacturer of turf and other commercial/industrial grounds control products. the company sells its products under the western®, fisher®, snowex®, turfex®, sweepex® and henderson® brands, which are among the most established and recognized in the industry.
Analysis Results
Intrinsic Value $65.45
Latest Price $30.16
Relative Value 54% undervalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
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 3.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.1%, 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 82.1 76.5
2024 84.6 73.4
2025 87.2 70.5
2026 89.9 67.7
2027 92.6 65.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1760 million. This corresponds to a present value of 1150 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 353 million. Adding in the terminal value gives a total present value of 1500 million.

There are presently 23.0 million outstanding shares, so the intrinsic value per share is 65.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 252,921,000
Current Cash 20,670,000
Current Liabilities 100,431,000
Current Debt 12,348,000
Non-Cash Working Capital (NCWC) 144,168,000
Change in NCWC 28,825,000
EBIT 58,753,000
Tax Provision 8,752,000
Depreciation and Amortization 20,938,000
Capital Expenditure -12,047,000
Unlevered Free Cash Flow 85,611,833
Current Assets 220,431,000
Current Cash 36,964,000
Current Liabilities 81,916,000
Current Debt 13,792,000
Non-Cash Working Capital (NCWC) 115,343,000
Change in NCWC -4,159,000
EBIT 52,346,000
Tax Provision 3,897,000
Depreciation and Amortization 20,316,000
Capital Expenditure -11,208,000
Unlevered Free Cash Flow 51,397,221
Current Assets 217,187,000
Current Cash 41,030,000
Current Liabilities 66,206,000
Current Debt 9,551,000
Non-Cash Working Capital (NCWC) 119,502,000
Change in NCWC -6,940,000
EBIT 52,732,000
Tax Provision -12,276,000
Depreciation and Amortization 19,737,000
Capital Expenditure -14,490,000
Unlevered Free Cash Flow 51,039,000
Current Assets 211,528,000
Current Cash 35,665,000
Current Liabilities 78,103,000
Current Debt 28,682,000
Non-Cash Working Capital (NCWC) 126,442,000
Change in NCWC -2,718,000
EBIT 86,573,000
Tax Provision 13,451,000
Depreciation and Amortization 19,212,000
Capital Expenditure -11,533,000
Unlevered Free Cash Flow 72,936,918
Current Assets 199,095,000
Current Cash 27,820,000
Current Liabilities 79,068,000
Current Debt 36,953,000
Non-Cash Working Capital (NCWC) 129,160,000
Change in NCWC 8,245,000
EBIT 73,460,000
Tax Provision 11,854,000
Depreciation and Amortization 19,085,000
Capital Expenditure -9,690,000
Unlevered Free Cash Flow 75,482,882
Current Assets 198,113,000
Current Cash 36,875,000
Current Liabilities 80,783,000
Current Debt 40,460,000
Non-Cash Working Capital (NCWC) 120,915,000
Change in NCWC 1,987,000
EBIT 70,091,000
Tax Provision -2,409,000
Depreciation and Amortization 18,584,000
Capital Expenditure -7,563,000
Unlevered Free Cash Flow 83,099,000
Current Assets 182,161,000
Current Cash 18,609,000
Current Liabilities 51,392,000
Current Debt 6,768,000
Non-Cash Working Capital (NCWC) 118,928,000
Change in NCWC 26,633,000
EBIT 69,118,000
Tax Provision 24,687,000
Depreciation and Amortization 16,742,000
Capital Expenditure -9,830,000
Unlevered Free Cash Flow 75,874,566
Current Assets 169,243,000
Current Cash 36,844,000
Current Liabilities 41,733,000
Current Debt 1,629,000
Non-Cash Working Capital (NCWC) 92,295,000
Change in NCWC 18,034,000
EBIT 77,351,000
Tax Provision 22,087,000
Depreciation and Amortization 12,281,000
Capital Expenditure -10,009,000
Unlevered Free Cash Flow 71,874,111
Current Assets 142,521,000
Current Cash 24,195,000
Current Liabilities 45,694,000
Current Debt 1,629,000
Non-Cash Working Capital (NCWC) 74,261,000
Change in NCWC 17,880,000
EBIT 72,284,000
Tax Provision 22,036,000
Depreciation and Amortization 9,225,000
Capital Expenditure -5,254,000
Unlevered Free Cash Flow 68,442,624
Current Assets 98,372,000
Current Cash 19,864,000
Current Liabilities 36,098,000
Current Debt 13,971,000
Non-Cash Working Capital (NCWC) 56,381,000
Change in NCWC 6,634,000
EBIT 28,153,000
Tax Provision 7,378,000
Depreciation and Amortization 8,693,000
Capital Expenditure -2,775,000
Unlevered Free Cash Flow 29,782,518
Current Assets 89,582,000
Current Cash 24,136,000
Current Liabilities 16,670,000
Current Debt 971,000
Non-Cash Working Capital (NCWC) 49,747,000
Change in NCWC 7,257,000
EBIT 18,869,000
Tax Provision 4,144,000
Depreciation and Amortization 8,018,000
Capital Expenditure -1,446,000
Unlevered Free Cash Flow 24,998,794

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