DCF Tool

RBA

Ritchie Bros Auctioneers Inc – All Other Business Support Services
Established in 1958, Ritchie Bros. is a global asset management and disposition company, oQering customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a number of sectors, including construction, transportation, agriculture, energy, oil and gas, mining, and forestry, the company's selling channels include: Ritchie Bros. Auctioneers, the world's largest industrial auctioneer o ers live auction events with online bidding; IronPlanet, an online marketplace with featured weekly auctions and providing the exclusive IronClad Assurance® equipment condition certi cation; Marketplace-E, a controlled marketplace o ering multiple price and timing options; Mascus, a leading European online equipment listing service; and Ritchie Bros. Private Treaty o ering privately negotiated sales. The company's suite of multichannel sales solutions also includes Ritchie Bros. Asset Solutions, a complete end-to-end asset management and disposition system. Ritchie Bros. also o ers sector-speciGc solutions including GovPlanet, TruckPlanet, and Kruse Energy, plus equipment Snancing and leasing through Ritchie Bros. Financial Services.
Analysis Results
Intrinsic Value $215.67
Latest Price $70.39
Relative Value 67% undervalued
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Cash Flow (Billions)
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 32.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.7%, 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 (billion) Present value (billion)
2022 0.39 0.367
2023 0.517 0.459
2024 0.686 0.574
2025 0.911 0.718
2026 1.21 0.898
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 29.8 billion. This corresponds to a present value of 20.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.02 billion. Adding in the terminal value gives a total present value of 23.9 billion.

There are presently 111.0 million outstanding shares, so the intrinsic value per share is 215.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 762,222,000
Current Cash 326,113,000
Current Liabilities 588,419,000
Current Debt 9,645,000
Non-Cash Working Capital (NCWC) -142,665,000
Change in NCWC 54,395,000
EBIT 269,700,000
Tax Provision 53,378,000
Depreciation and Amortization 100,721,000
Capital Expenditure -43,487,000
Unlevered Free Cash Flow 311,183,766
Current Assets 556,778,000
Current Cash 278,766,000
Current Liabilities 514,577,000
Current Debt 39,505,000
Non-Cash Working Capital (NCWC) -197,060,000
Change in NCWC -38,697,000
EBIT 269,227,000
Tax Provision 65,530,000
Depreciation and Amortization 87,161,000
Capital Expenditure -43,136,000
Unlevered Free Cash Flow 199,763,381
Current Assets 679,584,000
Current Cash 359,671,000
Current Liabilities 501,258,000
Current Debt 22,982,000
Non-Cash Working Capital (NCWC) -158,363,000
Change in NCWC -117,087,000
EBIT 219,935,000
Tax Provision 41,623,000
Depreciation and Amortization 70,501,000
Capital Expenditure -41,004,000
Unlevered Free Cash Flow 84,356,896
Current Assets 603,538,000
Current Cash 237,744,000
Current Liabilities 440,092,000
Current Debt 33,022,000
Non-Cash Working Capital (NCWC) -41,276,000
Change in NCWC 82,677,000
EBIT 187,339,000
Tax Provision 31,006,000
Depreciation and Amortization 66,614,000
Capital Expenditure -43,012,000
Unlevered Free Cash Flow 255,531,600
Current Assets 508,487,000
Current Cash 267,910,000
Current Liabilities 388,455,000
Current Debt 23,925,000
Non-Cash Working Capital (NCWC) -123,953,000
Change in NCWC -65,162,000
EBIT 155,514,000
Tax Provision 2,088,000
Depreciation and Amortization 52,694,000
Capital Expenditure -39,396,000
Unlevered Free Cash Flow 99,454,413
Current Assets 377,998,000
Current Cash 207,867,000
Current Liabilities 252,834,000
Current Debt 23,912,000
Non-Cash Working Capital (NCWC) -58,791,000
Change in NCWC -44,474,000
EBIT 176,971,000
Tax Provision 36,982,000
Depreciation and Amortization 40,861,000
Capital Expenditure -36,476,000
Unlevered Free Cash Flow 86,728,418

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