DCF Tool

SLGN

Silgan Holdings Inc. – Metal Can Manufacturing
Headquartered in Stamford, Connecticut, Silgan is a leading supplier of rigid packaging for consumer goods products with annual net sales of approximately $4.5 billion in 2019. Silgan operates 100 manufacturing facilities in North and South America, Europe and Asia. The Company is a leading supplier of metal containers in North America and Europe for food and general line products. The Company is also a leading worldwide supplier of metal and plastic closures and dispensing systems for food, beverage, health care, garden, personal care, home and beauty products. In addition, the Company is a leading supplier of plastic containers for shelf-stable food and personal care products in North America.
Analysis Results
Intrinsic Value $143.33
Latest Price $45.74
Relative Value 68% undervalued
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Cash Flow (Millions)
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 9.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.8%, 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 400 384
2023 439 406
2024 482 428
2025 530 452
2026 582 476
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 17400 million. This corresponds to a present value of 13700 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2150 million. Adding in the terminal value gives a total present value of 15900 million.

There are presently 111.0 million outstanding shares, so the intrinsic value per share is 143.33.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,295,849,000
Current Cash 631,439,000
Current Liabilities 1,508,522,000
Current Debt 20,251,000
Non-Cash Working Capital (NCWC) 176,139,000
Change in NCWC -49,989,000
EBIT 540,311,000
Tax Provision 107,232,000
Depreciation and Amortization 250,360,000
Capital Expenditure -232,264,000
Unlevered Free Cash Flow 384,169,632
Current Assets 1,799,193,000
Current Cash 409,481,000
Current Liabilities 1,191,620,000
Current Debt 28,036,000
Non-Cash Working Capital (NCWC) 226,128,000
Change in NCWC 11,860,000
EBIT 489,723,000
Tax Provision 98,356,000
Depreciation and Amortization 219,098,000
Capital Expenditure -224,177,000
Unlevered Free Cash Flow 378,179,758
Current Assets 1,406,808,000
Current Cash 203,824,000
Current Liabilities 1,018,529,000
Current Debt 29,813,000
Non-Cash Working Capital (NCWC) 214,268,000
Change in NCWC -94,193,000
EBIT 398,041,000
Tax Provision 58,322,000
Depreciation and Amortization 206,483,000
Capital Expenditure -230,944,000
Unlevered Free Cash Flow 187,315,470
Current Assets 1,290,134,000
Current Cash 72,819,000
Current Liabilities 1,079,068,000
Current Debt 170,214,000
Non-Cash Working Capital (NCWC) 308,461,000
Change in NCWC -80,440,000
EBIT 381,387,000
Tax Provision 69,307,000
Depreciation and Amortization 191,737,000
Capital Expenditure -190,973,000
Unlevered Free Cash Flow 211,589,286
Current Assets 1,291,922,000
Current Cash 53,533,000
Current Liabilities 958,277,000
Current Debt 108,789,000
Non-Cash Working Capital (NCWC) 388,901,000
Change in NCWC 96,111,000
EBIT 362,816,000
Tax Provision -29,978,000
Depreciation and Amortization 174,062,000
Capital Expenditure -174,429,000
Unlevered Free Cash Flow 458,560,000
Current Assets 962,178,000
Current Cash 24,690,000
Current Liabilities 861,825,000
Current Debt 217,127,000
Non-Cash Working Capital (NCWC) 292,790,000
Change in NCWC -23,708,000
EBIT 318,791,000
Tax Provision 78,566,000
Depreciation and Amortization 143,058,000
Capital Expenditure -191,893,000
Unlevered Free Cash Flow 138,251,890
Current Assets 1,045,258,000
Current Cash 99,945,000
Current Liabilities 781,213,000
Current Debt 152,398,000
Non-Cash Working Capital (NCWC) 316,498,000
Change in NCWC -79,311,000
EBIT 334,219,000
Tax Provision 80,473,000
Depreciation and Amortization 142,192,000
Capital Expenditure -237,302,000
Unlevered Free Cash Flow 53,443,335
Current Assets 1,157,832,000
Current Cash 222,591,000
Current Liabilities 664,562,000
Current Debt 125,130,000
Non-Cash Working Capital (NCWC) 395,809,000
Change in NCWC -52,094,000
EBIT 375,334,000
Tax Provision 102,161,000
Depreciation and Amortization 148,089,000
Capital Expenditure -140,429,000
Unlevered Free Cash Flow 196,146,082
Current Assets 1,082,448,000
Current Cash 160,463,000
Current Liabilities 620,256,000
Current Debt 146,174,000
Non-Cash Working Capital (NCWC) 447,903,000
Change in NCWC -17,766,000
EBIT 336,167,000
Tax Provision 69,305,000
Depreciation and Amortization 167,644,000
Capital Expenditure -103,136,000
Unlevered Free Cash Flow 291,442,931
Current Assets 1,378,487,000
Current Cash 465,608,000
Current Liabilities 702,559,000
Current Debt 255,349,000
Non-Cash Working Capital (NCWC) 465,669,000
Change in NCWC 36,760,000
EBIT 334,169,000
Tax Provision 72,441,000
Depreciation and Amortization 165,015,000
Capital Expenditure -119,241,000
Unlevered Free Cash Flow 308,530,780

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