DCF Tool

ROK

Rockwell Automation Inc – Optical Instrument and Lens Manufacturing
Rockwell Automation, Inc. is an American provider of industrial automation whose brands include Allen-Bradley, FactoryTalk software and LifecycleIQ Services. Its solutions include hardware and software products, and services.
Analysis Results
Intrinsic Value $227.21
Latest Price $215.11
Relative Value 5% 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 7.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.2%, 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 1.28 1.19
2023 1.37 1.19
2024 1.47 1.18
2025 1.58 1.18
2026 1.69 1.18
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 31.3 billion. This corresponds to a present value of 20.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.91 billion. Adding in the terminal value gives a total present value of 26.2 billion.

There are presently 115.0 million outstanding shares, so the intrinsic value per share is 227.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,126,800,000
Current Cash 1,324,400,000
Current Liabilities 5,984,400,000
Current Debt 1,019,400,000
Non-Cash Working Capital (NCWC) -162,600,000
Change in NCWC -357,600,000
EBIT 2,435,400,000
Tax Provision 363,800,000
Depreciation and Amortization 379,600,000
Capital Expenditure -240,600,000
Unlevered Free Cash Flow 1,926,537,085
Current Assets 2,685,800,000
Current Cash 704,600,000
Current Liabilities 1,810,800,000
Current Debt 24,600,000
Non-Cash Working Capital (NCWC) 195,000,000
Change in NCWC -96,400,000
EBIT 1,115,400,000
Tax Provision 112,900,000
Depreciation and Amortization 172,700,000
Capital Expenditure -113,900,000
Unlevered Free Cash Flow 966,957,063
Current Assets 2,985,700,000
Current Cash 1,058,000,000
Current Liabilities 1,936,800,000
Current Debt 300,500,000
Non-Cash Working Capital (NCWC) 291,400,000
Change in NCWC 56,300,000
EBIT 1,361,600,000
Tax Provision 205,200,000
Depreciation and Amortization 152,200,000
Capital Expenditure -132,800,000
Unlevered Free Cash Flow 1,127,199,755
Current Assets 2,830,700,000
Current Cash 909,700,000
Current Liabilities 2,236,900,000
Current Debt 551,000,000
Non-Cash Working Capital (NCWC) 235,100,000
Change in NCWC -104,700,000
EBIT 1,273,200,000
Tax Provision 795,300,000
Depreciation and Amortization 164,600,000
Capital Expenditure -125,500,000
Unlevered Free Cash Flow 446,722,362
Current Assets 4,420,700,000
Current Cash 2,535,500,000
Current Liabilities 2,145,800,000
Current Debt 600,400,000
Non-Cash Working Capital (NCWC) 339,800,000
Change in NCWC 111,300,000
EBIT 1,032,700,000
Tax Provision 211,700,000
Depreciation and Amortization 168,900,000
Capital Expenditure -141,700,000
Unlevered Free Cash Flow 960,459,118
Current Assets 4,185,000,000
Current Cash 2,429,200,000
Current Liabilities 1,975,900,000
Current Debt 448,600,000
Non-Cash Working Capital (NCWC) 228,500,000
Change in NCWC -342,600,000
EBIT 1,008,100,000
Tax Provision 213,400,000
Depreciation and Amortization 172,200,000
Capital Expenditure -116,900,000
Unlevered Free Cash Flow 492,692,121
Current Assets 4,048,000,000
Current Cash 2,149,200,000
Current Liabilities 1,327,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 571,100,000
Change in NCWC -176,200,000
EBIT 1,196,700,000
Tax Provision 299,900,000
Depreciation and Amortization 162,500,000
Capital Expenditure -122,900,000
Unlevered Free Cash Flow 741,793,720
Current Assets 3,934,200,000
Current Cash 1,819,800,000
Current Liabilities 1,692,100,000
Current Debt 325,000,000
Non-Cash Working Capital (NCWC) 747,300,000
Change in NCWC 6,700,000
EBIT 1,186,300,000
Tax Provision 307,400,000
Depreciation and Amortization 152,500,000
Capital Expenditure -141,000,000
Unlevered Free Cash Flow 882,979,439
Current Assets 3,679,900,000
Current Cash 1,573,600,000
Current Liabilities 1,544,700,000
Current Debt 179,000,000
Non-Cash Working Capital (NCWC) 740,600,000
Change in NCWC -18,400,000
EBIT 1,039,400,000
Tax Provision 224,600,000
Depreciation and Amortization 145,200,000
Capital Expenditure -146,200,000
Unlevered Free Cash Flow 782,005,056
Current Assets 3,387,500,000
Current Cash 1,253,900,000
Current Liabilities 1,531,600,000
Current Debt 157,000,000
Non-Cash Working Capital (NCWC) 759,000,000
Change in NCWC 2,700,000
EBIT 1,033,300,000
Tax Provision 228,900,000
Depreciation and Amortization 138,600,000
Capital Expenditure -139,600,000
Unlevered Free Cash Flow 790,127,476

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