DCF Tool


Resideo Technologies Inc – Hardware Merchant Wholesalers
Resideo Technologies Inc. is a leading global manufacturer and distributor of technology-driven products and solutions that provide comfort, security, energy efficiency and control to customers worldwide. Building on a 130-year heritage, Resideo has a presence in more than 150 million homes, with 15 million systems installed in homes each year. The company continues to serve more than 110,000 professionals through leading distributors, including its ADI Global Distribution business, which exports to more than 100 countries from nearly 200 stocking locations around the world.
Analysis Results
Intrinsic Value $1,608.97
Latest Price $17.48
Relative Value 99% undervalued
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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 60.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 60.4%, 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 1.29 1.25
2024 2.06 1.95
2025 3.31 3.05
2026 5.31 4.77
2027 8.51 7.44
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 255 billion. This corresponds to a present value of 217 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.5 billion. Adding in the terminal value gives a total present value of 236 billion.

There are presently 147.0 million outstanding shares, so the intrinsic value per share is 1608.97.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,502,000,000
Current Cash 326,000,000
Current Liabilities 1,546,000,000
Current Debt 152,000,000
Non-Cash Working Capital (NCWC) 782,000,000
Change in NCWC 364,000,000
EBIT 646,000,000
Tax Provision 135,000,000
Depreciation and Amortization 94,000,000
Capital Expenditure -85,000,000
Unlevered Free Cash Flow 810,363,636
Current Assets 2,541,000,000
Current Cash 779,000,000
Current Liabilities 1,494,000,000
Current Debt 150,000,000
Non-Cash Working Capital (NCWC) 418,000,000
Change in NCWC 101,000,000
EBIT 559,000,000
Tax Provision 111,000,000
Depreciation and Amortization 88,000,000
Capital Expenditure -63,000,000
Unlevered Free Cash Flow 509,223,796
Current Assets 2,225,000,000
Current Cash 517,000,000
Current Liabilities 1,538,000,000
Current Debt 147,000,000
Non-Cash Working Capital (NCWC) 317,000,000
Change in NCWC -14,000,000
EBIT 311,000,000
Tax Provision 64,000,000
Depreciation and Amortization 86,000,000
Capital Expenditure -70,000,000
Unlevered Free Cash Flow 115,930,693
Current Assets 1,785,000,000
Current Cash 122,000,000
Current Liabilities 1,494,000,000
Current Debt 162,000,000
Non-Cash Working Capital (NCWC) 331,000,000
Change in NCWC 114,000,000
EBIT 258,000,000
Tax Provision 35,000,000
Depreciation and Amortization 80,000,000
Capital Expenditure -95,000,000
Unlevered Free Cash Flow 229,816,901
Current Assets 1,809,000,000
Current Cash 265,000,000
Current Liabilities 1,489,000,000
Current Debt 162,000,000
Non-Cash Working Capital (NCWC) 217,000,000
Change in NCWC 28,000,000
EBIT 493,000,000
Tax Provision -301,000,000
Depreciation and Amortization 66,000,000
Capital Expenditure -81,000,000
Unlevered Free Cash Flow 506,000,000

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