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Pentair plc – Fluid Power Valve and Hose Fitting Manufacturing
pentair plc (nyse: pnr) is a global water, fluid, thermal management and equipment protection partner with industry leading products, services, and solutions. with 2014 revenues of $7.0 billion, pentair employs approximately 30,000 people worldwide. we report the performance of our business within four global operating segments: valves & controls, flow & filtration solutions, water quality systems, and technical solutions. valves & controls designs, manufactures, markets, and services valves, fittings, automation and controls, and actuators for the energy and industrial verticals. process technologies designs, manufactures, markets, and services innovative water system products and solutions to meet filtration, separation, and fluid process management challenges in food and beverage, water, wastewater, swimming pools, and aquaculture applications. flow technologies designs, manufactures, and markets products and services designed for the transfer and flow of clean water, wa
Analysis Results
Intrinsic Value $47.04
Latest Price $66.28
Relative Value 41% overvalued
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Cash Flow (Billions)
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 -6.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -6.1%, 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 (billion) Present value (billion)
2023 0.346 0.333
2024 0.325 0.301
2025 0.305 0.272
2026 0.286 0.245
2027 0.269 0.222
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 8.07 billion. This corresponds to a present value of 6.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.37 billion. Adding in the terminal value gives a total present value of 7.78 billion.

There are presently 165.0 million outstanding shares, so the intrinsic value per share is 47.04.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,558,500,000
Current Cash 108,900,000
Current Liabilities 1,063,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 386,500,000
Change in NCWC 228,700,000
EBIT 595,300,000
Tax Provision 67,400,000
Depreciation and Amortization 106,600,000
Capital Expenditure -85,200,000
Unlevered Free Cash Flow 772,528,187
Current Assets 1,304,000,000
Current Cash 94,500,000
Current Liabilities 1,051,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 157,800,000
Change in NCWC 37,300,000
EBIT 636,900,000
Tax Provision 70,800,000
Depreciation and Amortization 77,500,000
Capital Expenditure -60,200,000
Unlevered Free Cash Flow 619,559,157
Current Assets 975,100,000
Current Cash 82,100,000
Current Liabilities 772,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 120,500,000
Change in NCWC -109,900,000
EBIT 461,400,000
Tax Provision 75,000,000
Depreciation and Amortization 75,100,000
Capital Expenditure -62,200,000
Unlevered Free Cash Flow 284,314,371
Current Assets 1,061,900,000
Current Cash 82,500,000
Current Liabilities 749,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 230,400,000
Change in NCWC 84,000,000
EBIT 432,500,000
Tax Provision 45,800,000
Depreciation and Amortization 80,000,000
Capital Expenditure -58,500,000
Unlevered Free Cash Flow 489,390,184
Current Assets 1,039,400,000
Current Cash 74,300,000
Current Liabilities 818,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 146,400,000
Change in NCWC -289,700,000
EBIT 436,700,000
Tax Provision 58,100,000
Depreciation and Amortization 84,600,000
Capital Expenditure -48,200,000
Unlevered Free Cash Flow 116,595,708
Current Assets 1,748,800,000
Current Cash 113,300,000
Current Liabilities 1,199,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 436,100,000
Change in NCWC -527,000,000
EBIT 682,100,000
Tax Provision 9,200,000
Depreciation and Amortization 182,900,000
Capital Expenditure -70,900,000
Unlevered Free Cash Flow 254,272,281
Current Assets 2,672,000,000
Current Cash 238,500,000
Current Liabilities 1,471,200,000
Current Debt 800,000
Non-Cash Working Capital (NCWC) 963,100,000
Change in NCWC -205,400,000
EBIT 705,000,000
Tax Provision 109,400,000
Depreciation and Amortization 181,000,000
Capital Expenditure -117,800,000
Unlevered Free Cash Flow 425,318,716
Current Assets 2,780,600,000
Current Cash 126,300,000
Current Liabilities 1,486,500,000
Current Debt 700,000
Non-Cash Working Capital (NCWC) 1,168,500,000
Change in NCWC 17,600,000
EBIT 734,700,000
Tax Provision 139,100,000
Depreciation and Amortization 260,900,000
Capital Expenditure -134,300,000
Unlevered Free Cash Flow 739,800,000
Current Assets 2,894,100,000
Current Cash 110,400,000
Current Liabilities 1,639,500,000
Current Debt 6,700,000
Non-Cash Working Capital (NCWC) 1,150,900,000
Change in NCWC -208,400,000
EBIT 853,100,000
Tax Provision 177,300,000
Depreciation and Amortization 252,700,000
Capital Expenditure -129,600,000
Unlevered Free Cash Flow 574,946,971
Current Assets 3,232,100,000
Current Cash 265,100,000
Current Liabilities 1,610,200,000
Current Debt 2,500,000
Non-Cash Working Capital (NCWC) 1,359,300,000
Change in NCWC -104,902,000
EBIT 786,800,000
Tax Provision 183,800,000
Depreciation and Amortization 286,100,000
Capital Expenditure -170,000,000
Unlevered Free Cash Flow 598,915,070
Current Assets 3,260,368,000
Current Cash 261,341,000
Current Liabilities 1,537,921,000
Current Debt 3,096,000
Non-Cash Working Capital (NCWC) 1,464,202,000
Change in NCWC 913,423,000
EBIT 19,755,000
Tax Provision -79,353,000
Depreciation and Amortization 163,792,000
Capital Expenditure -94,532,000
Unlevered Free Cash Flow 1,002,438,000

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