DCF Tool

RPM

RPM International, Inc. – Paint and Coating Manufacturing
RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across four reportable segments: consumer, construction products, performance coatings and specialty products. RPM has a diverse portfolio with hundreds of market-leading brands, including Rust-Oleum, DAP, Zinsser, Varathane, Day-Glo, Legend Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and workplaces, to infrastructure and precious landmarks, RPM's brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 14,600 individuals worldwide.
Analysis Results
Intrinsic Value $154.83
Latest Price $84.57
Relative Value 45% 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 9.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.1%, 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 0.838 0.783
2024 0.915 0.798
2025 0.998 0.813
2026 1.09 0.829
2027 1.19 0.845
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 24.0 billion. This corresponds to a present value of 15.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.07 billion. Adding in the terminal value gives a total present value of 20.0 billion.

There are presently 129.0 million outstanding shares, so the intrinsic value per share is 154.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,151,809,000
Current Cash 201,672,000
Current Liabilities 2,016,408,000
Current Debt 603,454,000
Non-Cash Working Capital (NCWC) 1,537,183,000
Change in NCWC 332,015,000
EBIT 634,004,000
Tax Provision 114,333,000
Depreciation and Amortization 153,074,000
Capital Expenditure -222,403,000
Unlevered Free Cash Flow 777,231,036
Current Assets 2,782,004,000
Current Cash 246,704,000
Current Liabilities 1,331,414,000
Current Debt 1,282,000
Non-Cash Working Capital (NCWC) 1,205,168,000
Change in NCWC 27,845,000
EBIT 782,931,000
Tax Provision 164,938,000
Depreciation and Amortization 293,714,000
Capital Expenditure -157,199,000
Unlevered Free Cash Flow 754,101,694
Current Assets 2,423,429,000
Current Cash 233,416,000
Current Liabilities 1,093,580,000
Current Debt 80,890,000
Non-Cash Working Capital (NCWC) 1,177,323,000
Change in NCWC -130,642,000
EBIT 543,587,000
Tax Provision 102,682,000
Depreciation and Amortization 156,842,000
Capital Expenditure -147,756,000
Unlevered Free Cash Flow 285,146,428
Current Assets 2,518,092,000
Current Cash 223,168,000
Current Liabilities 1,539,405,000
Current Debt 552,446,000
Non-Cash Working Capital (NCWC) 1,307,965,000
Change in NCWC 84,681,000
EBIT 488,550,000
Tax Provision 72,158,000
Depreciation and Amortization 141,742,000
Capital Expenditure -136,757,000
Unlevered Free Cash Flow 474,484,031
Current Assets 2,470,931,000
Current Cash 244,422,000
Current Liabilities 1,006,726,000
Current Debt 3,501,000
Non-Cash Working Capital (NCWC) 1,223,284,000
Change in NCWC 158,094,000
EBIT 534,106,000
Tax Provision 77,791,000
Depreciation and Amortization 128,499,000
Capital Expenditure -114,619,000
Unlevered Free Cash Flow 606,454,441
Current Assets 2,397,436,000
Current Cash 350,497,000
Current Liabilities 1,235,394,000
Current Debt 253,645,000
Non-Cash Working Capital (NCWC) 1,065,190,000
Change in NCWC 189,478,000
EBIT 529,865,000
Tax Provision 59,662,000
Depreciation and Amortization 116,773,000
Capital Expenditure -126,109,000
Unlevered Free Cash Flow 580,622,898
Current Assets 2,138,342,000
Current Cash 265,152,000
Current Liabilities 1,002,191,000
Current Debt 4,713,000
Non-Cash Working Capital (NCWC) 875,712,000
Change in NCWC -148,225,000
EBIT 570,502,000
Tax Provision 126,008,000
Depreciation and Amortization 111,039,000
Capital Expenditure -117,183,000
Unlevered Free Cash Flow 267,440,401
Current Assets 2,099,846,000
Current Cash 174,711,000
Current Liabilities 903,236,000
Current Debt 2,038,000
Non-Cash Working Capital (NCWC) 1,023,937,000
Change in NCWC 225,934,000
EBIT 532,564,000
Tax Provision 224,925,000
Depreciation and Amortization 99,176,000
Capital Expenditure -85,363,000
Unlevered Free Cash Flow 508,028,231
Current Assets 2,062,295,000
Current Cash 332,868,000
Current Liabilities 937,086,000
Current Debt 5,662,000
Non-Cash Working Capital (NCWC) 798,003,000
Change in NCWC 178,794,000
EBIT 499,111,000
Tax Provision 118,503,000
Depreciation and Amortization 90,069,000
Capital Expenditure -93,792,000
Unlevered Free Cash Flow 534,846,400
Current Assets 1,886,272,000
Current Cash 343,554,000
Current Liabilities 928,030,000
Current Debt 4,521,000
Non-Cash Working Capital (NCWC) 619,209,000
Change in NCWC -118,952,000
EBIT 350,246,000
Tax Provision 67,040,000
Depreciation and Amortization 83,744,000
Capital Expenditure -91,367,000
Unlevered Free Cash Flow 90,931,110
Current Assets 1,811,337,000
Current Cash 315,968,000
Current Liabilities 759,792,000
Current Debt 2,584,000
Non-Cash Working Capital (NCWC) 738,161,000
Change in NCWC 37,942,000
EBIT 395,303,000
Tax Provision 94,526,000
Depreciation and Amortization 73,698,000
Capital Expenditure -71,615,000
Unlevered Free Cash Flow 321,506,302

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