DCF Tool

ROL

Rollins, Inc. – Exterminating and Pest Control Services
Rollins, Inc. is a premier global consumer and commercial services company. Through its family of leading brands, Orkin, HomeTeam Pest Defense, Clark Pest Control, Orkin Canada, Western Pest Services, Northwest Exterminating, Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Services, OPC Services, PermaTreat, Rollins UK, Aardwolf Pestkare, and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than two million customers in North America, South America, Europe, Asia, Africa, and Australia from more than 700 locations.
Analysis Results
Intrinsic Value $23.25
Latest Price $34.68
Relative Value 49% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 14.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.8%, 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 (million) Present value (million)
2022 419 391
2023 482 418
2024 553 448
2025 635 479
2026 729 513
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14000 million. This corresponds to a present value of 9200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2250 million. Adding in the terminal value gives a total present value of 11400 million.

There are presently 492.0 million outstanding shares, so the intrinsic value per share is 23.25.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 352,380,000
Current Cash 105,301,000
Current Liabilities 491,162,000
Current Debt 18,750,000
Non-Cash Working Capital (NCWC) -225,333,000
Change in NCWC 13,690,000
EBIT 439,989,000
Tax Provision 124,151,000
Depreciation and Amortization 94,205,000
Capital Expenditure -27,194,000
Unlevered Free Cash Flow 405,650,609
Current Assets 314,777,000
Current Cash 98,477,000
Current Liabilities 472,511,000
Current Debt 17,188,000
Non-Cash Working Capital (NCWC) -239,023,000
Change in NCWC -56,999,000
EBIT 368,092,000
Tax Provision 93,896,000
Depreciation and Amortization 89,444,000
Capital Expenditure -23,229,000
Unlevered Free Cash Flow 279,872,370
Current Assets 309,787,000
Current Cash 94,276,000
Current Liabilities 410,035,000
Current Debt 12,500,000
Non-Cash Working Capital (NCWC) -182,024,000
Change in NCWC -53,531,000
EBIT 317,394,000
Tax Provision 57,813,000
Depreciation and Amortization 79,544,000
Capital Expenditure -27,146,000
Unlevered Free Cash Flow 245,999,477
Current Assets 286,021,000
Current Cash 115,485,000
Current Liabilities 299,029,000
Current Debt 0
Non-Cash Working Capital (NCWC) -128,493,000
Change in NCWC 10,331,000
EBIT 309,638,000
Tax Provision 79,070,000
Depreciation and Amortization 64,675,000
Capital Expenditure -27,179,000
Unlevered Free Cash Flow 278,673,636
Current Assets 262,795,000
Current Cash 107,050,000
Current Liabilities 294,569,000
Current Debt 0
Non-Cash Working Capital (NCWC) -138,824,000
Change in NCWC -9,219,000
EBIT 294,001,000
Tax Provision 115,378,000
Depreciation and Amortization 55,533,000
Capital Expenditure -24,680,000
Unlevered Free Cash Flow 200,453,278
Current Assets 290,171,000
Current Cash 142,785,000
Current Liabilities 276,991,000
Current Debt 0
Non-Cash Working Capital (NCWC) -129,605,000
Change in NCWC -55,924,000
EBIT 259,699,000
Tax Provision 93,267,000
Depreciation and Amortization 49,894,000
Capital Expenditure -33,081,000
Unlevered Free Cash Flow 127,656,299
Current Assets 313,879,000
Current Cash 134,574,000
Current Liabilities 252,986,000
Current Debt 0
Non-Cash Working Capital (NCWC) -73,681,000
Change in NCWC 3,412,000
EBIT 241,065,000
Tax Provision 91,029,000
Depreciation and Amortization 42,139,000
Capital Expenditure -39,495,000
Unlevered Free Cash Flow 156,882,960
Current Assets 283,958,000
Current Cash 108,372,000
Current Liabilities 252,679,000
Current Debt 0
Non-Cash Working Capital (NCWC) -77,093,000
Change in NCWC 2,473,000
EBIT 218,612,000
Tax Provision 81,820,000
Depreciation and Amortization 42,277,000
Capital Expenditure -28,739,000
Unlevered Free Cash Flow 153,128,067
Current Assets 274,442,000
Current Cash 118,216,000
Current Liabilities 235,792,000
Current Debt 0
Non-Cash Working Capital (NCWC) -79,566,000
Change in NCWC 7,940,000
EBIT 191,056,000
Tax Provision 68,276,000
Depreciation and Amortization 39,571,000
Capital Expenditure -18,632,000
Unlevered Free Cash Flow 151,854,984
Current Assets 205,992,000
Current Cash 65,082,000
Current Liabilities 228,416,000
Current Debt 0
Non-Cash Working Capital (NCWC) -87,506,000
Change in NCWC 8,798,000
EBIT 177,188,000
Tax Provision 65,310,000
Depreciation and Amortization 38,655,000
Capital Expenditure -19,040,000
Unlevered Free Cash Flow 140,089,126

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.