POOL Intrinsic Value

POOL

Pool Corporation – Sporting and Recreational Goods and Supplies Merchant Wholesalers

with more than 3,400 employees and over 300 locations worldwide, poolcorp leads the pack as the world's largest wholesale distributor of swimming pool supplies, equipment and related leisure products. our inventory includes a diverse range of products, from construction materials, replacement parts and fencing to pool care products and spas, with roughly 80,000 wholesale customers around the world. poolcorp offers a continuously expanding roster of products to its customers. there are presently more than 160,000 national brand and private label products in our network’s inventory. poolcorp constantly strives to locate products at the lowest possible cost, while at the same time maximizing supply logistics to deliver the best value to our customers. since our founding, poolcorp’s singular focus has been exceptional value. we are dedicated to promoting growth for our customers’ businesses, expanding opportunities for our employees and increasing returns for our shareholders.

Analysis Results

Intrinsic Value	$1,130.35
Latest Price	$343.70
Relative Value	70% undervalued

Share results:

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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 36.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 36.8%, 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 (billion)	Present value (billion)
2023	1.51	1.36
2024	2.07	1.68
2025	2.83	2.08
2026	3.87	2.57
2027	5.29	3.17

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 61.5 billion. This corresponds to a present value of 33.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.9 billion. Adding in the terminal value gives a total present value of 44.1 billion.

There are presently 39.1 million outstanding shares, so the intrinsic value per share is 1130.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	2,018,991,000
Current Cash	45,591,000
Current Liabilities	675,714,000
Current Debt	25,042,000
Non-Cash Working Capital (NCWC)	1,322,728,000
Change in NCWC	310,608,000
EBIT	1,026,741,000
Tax Provision	236,763,000
Depreciation and Amortization	39,025,000
Capital Expenditure	-43,619,000
Unlevered Free Cash Flow	1,086,015,139

Current Assets	1,769,085,000
Current Cash	24,321,000
Current Liabilities	744,416,000
Current Debt	11,772,000
Non-Cash Working Capital (NCWC)	1,012,120,000
Change in NCWC	395,701,000
EBIT	830,575,000
Tax Provision	173,812,000
Depreciation and Amortization	30,026,000
Capital Expenditure	-37,658,000
Unlevered Free Cash Flow	1,043,537,743

Current Assets	1,121,927,000
Current Cash	34,128,000
Current Liabilities	483,249,000
Current Debt	11,869,000
Non-Cash Working Capital (NCWC)	616,419,000
Change in NCWC	50,535,000
EBIT	471,266,000
Tax Provision	85,231,000
Depreciation and Amortization	29,398,000
Capital Expenditure	-21,702,000
Unlevered Free Cash Flow	440,627,027

Current Assets	973,568,000
Current Cash	28,583,000
Current Liabilities	390,846,000
Current Debt	11,745,000
Non-Cash Working Capital (NCWC)	565,884,000
Change in NCWC	-36,560,000
EBIT	341,508,000
Tax Provision	56,161,000
Depreciation and Amortization	29,274,000
Capital Expenditure	-33,362,000
Unlevered Free Cash Flow	240,497,212

Current Assets	915,244,000
Current Cash	16,358,000
Current Liabilities	305,610,000
Current Debt	9,168,000
Non-Cash Working Capital (NCWC)	602,444,000
Change in NCWC	160,867,000
EBIT	314,131,000
Tax Provision	58,774,000
Depreciation and Amortization	27,915,000
Capital Expenditure	-31,580,000
Unlevered Free Cash Flow	408,370,749

Current Assets	782,248,000
Current Cash	29,940,000
Current Liabilities	321,566,000
Current Debt	10,835,000
Non-Cash Working Capital (NCWC)	441,577,000
Change in NCWC	63,091,000
EBIT	284,510,000
Tax Provision	77,982,000
Depreciation and Amortization	25,725,000
Capital Expenditure	-39,390,000
Unlevered Free Cash Flow	251,556,019

Current Assets	695,557,000
Current Cash	21,956,000
Current Liabilities	296,220,000
Current Debt	1,105,000
Non-Cash Working Capital (NCWC)	378,486,000
Change in NCWC	33,124,000
EBIT	256,015,000
Tax Provision	92,931,000
Depreciation and Amortization	21,977,000
Capital Expenditure	-34,352,000
Unlevered Free Cash Flow	178,261,387

Current Assets	661,744,000
Current Cash	13,237,000
Current Liabilities	304,845,000
Current Debt	1,700,000
Non-Cash Working Capital (NCWC)	345,362,000
Change in NCWC	13,358,000
EBIT	216,433,000
Tax Provision	80,137,000
Depreciation and Amortization	17,388,000
Capital Expenditure	-29,095,000
Unlevered Free Cash Flow	134,842,456

Current Assets	637,213,000
Current Cash	14,830,000
Current Liabilities	291,908,000
Current Debt	1,529,000
Non-Cash Working Capital (NCWC)	332,004,000
Change in NCWC	26,167,000
EBIT	189,074,000
Tax Provision	70,559,000
Depreciation and Amortization	15,882,000
Capital Expenditure	-17,328,000
Unlevered Free Cash Flow	140,327,596

Current Assets	577,749,000
Current Cash	8,006,000
Current Liabilities	263,906,000
Current Debt	0
Non-Cash Working Capital (NCWC)	305,837,000
Change in NCWC	23,200,000
EBIT	165,668,000
Tax Provision	61,590,000
Depreciation and Amortization	14,596,000
Capital Expenditure	-18,742,000
Unlevered Free Cash Flow	120,516,789

Current Assets	543,096,000
Current Cash	12,463,000
Current Liabilities	247,996,000
Current Debt	0
Non-Cash Working Capital (NCWC)	282,637,000
Change in NCWC	-7,020,000
EBIT	152,131,000
Tax Provision	56,744,000
Depreciation and Amortization	12,876,000
Capital Expenditure	-16,271,000
Unlevered Free Cash Flow	79,484,379

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