DCF Tool

PLPC

Preformed Line Products Co. – Optical Instrument and Lens Manufacturing
Founded in 1947, Preformed Line Products is a leading designer, manufacturer, and supplier of products and services used to construct and maintain overhead and underground networks. The company operates in several critical infrastructure industries, including electric power, telecommunications, broadband, and renewable energy, among others. Headquartered in Cleveland, Ohio, PLP has two domestic manufacturing facilities, eighteen foreign subsidiaries, and a global network of more than 3,000 employees.
Analysis Results
Intrinsic Value $939.16
Latest Price $92.43
Relative Value 90% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 41.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 41.7%, 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 67.8 63.6
2023 96.1 84.4
2024 136 112
2025 193 149
2026 273 198
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5920 million. This corresponds to a present value of 4010 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 606 million. Adding in the terminal value gives a total present value of 4620 million.

There are presently 4.92 million outstanding shares, so the intrinsic value per share is 939.16.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 272,111,000
Current Cash 36,406,000
Current Liabilities 105,535,000
Current Debt 19,539,000
Non-Cash Working Capital (NCWC) 149,709,000
Change in NCWC 19,700,000
EBIT 47,549,000
Tax Provision 13,175,000
Depreciation and Amortization 15,564,000
Capital Expenditure -18,384,000
Unlevered Free Cash Flow 51,616,948
Current Assets 256,314,000
Current Cash 45,175,000
Current Liabilities 103,774,000
Current Debt 22,644,000
Non-Cash Working Capital (NCWC) 130,009,000
Change in NCWC 5,986,000
EBIT 40,207,000
Tax Provision 10,810,000
Depreciation and Amortization 13,838,000
Capital Expenditure -24,569,000
Unlevered Free Cash Flow 24,748,986
Current Assets 231,975,000
Current Cash 38,929,000
Current Liabilities 81,073,000
Current Debt 12,050,000
Non-Cash Working Capital (NCWC) 124,023,000
Change in NCWC 12,366,000
EBIT 32,627,000
Tax Provision 8,122,000
Depreciation and Amortization 13,748,000
Capital Expenditure -29,467,000
Unlevered Free Cash Flow 20,850,181
Current Assets 214,263,000
Current Cash 43,609,000
Current Liabilities 69,487,000
Current Debt 10,490,000
Non-Cash Working Capital (NCWC) 111,657,000
Change in NCWC 9,406,000
EBIT 32,934,000
Tax Provision 6,007,000
Depreciation and Amortization 12,444,000
Capital Expenditure -9,528,000
Unlevered Free Cash Flow 39,185,221
Current Assets 207,130,000
Current Cash 44,358,000
Current Liabilities 62,833,000
Current Debt 2,312,000
Non-Cash Working Capital (NCWC) 102,251,000
Change in NCWC -3,427,000
EBIT 26,108,000
Tax Provision 13,152,000
Depreciation and Amortization 12,790,000
Capital Expenditure -11,233,000
Unlevered Free Cash Flow 10,932,086
Current Assets 189,107,000
Current Cash 30,737,000
Current Liabilities 55,455,000
Current Debt 2,763,000
Non-Cash Working Capital (NCWC) 105,678,000
Change in NCWC -1,058,000
EBIT 21,479,000
Tax Provision 5,698,000
Depreciation and Amortization 11,996,000
Capital Expenditure -24,725,000
Unlevered Free Cash Flow 1,850,958
Current Assets 188,497,000
Current Cash 30,393,000
Current Liabilities 51,891,000
Current Debt 523,000
Non-Cash Working Capital (NCWC) 106,736,000
Change in NCWC -10,882,000
EBIT 12,349,000
Tax Provision 5,031,000
Depreciation and Amortization 11,532,000
Capital Expenditure -10,754,000
Unlevered Free Cash Flow -3,062,348
Current Assets 200,663,000
Current Cash 29,643,000
Current Liabilities 55,327,000
Current Debt 1,925,000
Non-Cash Working Capital (NCWC) 117,618,000
Change in NCWC 7,090,000
EBIT 21,238,000
Tax Provision 8,549,000
Depreciation and Amortization 12,857,000
Capital Expenditure -17,663,000
Unlevered Free Cash Flow 15,041,679
Current Assets 185,734,000
Current Cash 24,291,000
Current Liabilities 52,215,000
Current Debt 1,300,000
Non-Cash Working Capital (NCWC) 110,528,000
Change in NCWC 2,322,000
EBIT 32,010,000
Tax Provision 11,207,000
Depreciation and Amortization 12,088,000
Capital Expenditure -21,034,000
Unlevered Free Cash Flow 14,102,862
Current Assets 194,101,000
Current Cash 28,120,000
Current Liabilities 58,243,000
Current Debt 468,000
Non-Cash Working Capital (NCWC) 108,206,000
Change in NCWC -5,956,000
EBIT 44,122,000
Tax Provision 15,541,000
Depreciation and Amortization 11,564,000
Capital Expenditure -21,043,000
Unlevered Free Cash Flow 13,390,415

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.