DCF Tool

SITE

SiteOne Landscape Supply Inc – Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers
SiteOne Landscape Supply (NYSE: SITE), is the largest and only national wholesale distributor of landscape supplies in the United States and has a growing presence in Canada. Its customers are primarily residential and commercial landscape professionals who specialize in the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces.
Analysis Results
Intrinsic Value $273.41
Latest Price $141.08
Relative Value 48% 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 31.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 31.3%, 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 0.523 0.47
2023 0.687 0.554
2024 0.902 0.654
2025 1.18 0.771
2026 1.55 0.91
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17.0 billion. This corresponds to a present value of 8.95 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.36 billion. Adding in the terminal value gives a total present value of 12.3 billion.

There are presently 45.0 million outstanding shares, so the intrinsic value per share is 273.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,128,800,000
Current Cash 53,700,000
Current Liabilities 512,900,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 577,200,000
Change in NCWC 137,400,000
EBIT 312,000,000
Tax Provision 56,100,000
Depreciation and Amortization 83,000,000
Capital Expenditure -37,000,000
Unlevered Free Cash Flow 435,966,383
Current Assets 851,600,000
Current Cash 55,200,000
Current Liabilities 368,600,000
Current Debt 12,000,000
Non-Cash Working Capital (NCWC) 439,800,000
Change in NCWC -7,400,000
EBIT 173,100,000
Tax Provision 27,500,000
Depreciation and Amortization 67,200,000
Capital Expenditure -7,200,000
Unlevered Free Cash Flow 193,709,072
Current Assets 765,800,000
Current Cash 19,000,000
Current Liabilities 310,800,000
Current Debt 11,200,000
Non-Cash Working Capital (NCWC) 447,200,000
Change in NCWC -28,200,000
EBIT 118,900,000
Tax Provision 13,800,000
Depreciation and Amortization 59,500,000
Capital Expenditure -21,400,000
Unlevered Free Cash Flow 110,867,540
Current Assets 765,400,000
Current Cash 17,300,000
Current Liabilities 282,400,000
Current Debt 9,700,000
Non-Cash Working Capital (NCWC) 475,400,000
Change in NCWC 87,600,000
EBIT 99,300,000
Tax Provision 1,300,000
Depreciation and Amortization 52,300,000
Capital Expenditure -19,900,000
Unlevered Free Cash Flow 217,583,377
Current Assets 601,900,000
Current Cash 16,700,000
Current Liabilities 205,800,000
Current Debt 8,400,000
Non-Cash Working Capital (NCWC) 387,800,000
Change in NCWC 92,300,000
EBIT 93,300,000
Tax Provision 18,000,000
Depreciation and Amortization 43,100,000
Capital Expenditure -16,000,000
Unlevered Free Cash Flow 189,567,768

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