DCF Tool

SMG

Scotts Miracle-Gro Company – Landscaping Services
With approximately $4.1 billion in sales, the Company is one of the world's largest marketers of branded consumer products for lawn and garden care. The Company's brands are among the most recognized in the industry. The Company's Scotts®, Miracle-Gro® and Ortho® brands are market-leading in their categories. The Company's wholly-owned subsidiary, The Hawthorne Gardening Company, is a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment.
Analysis Results
Intrinsic Value $453.14
Latest Price $91.01
Relative Value 80% 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 19.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.0%, 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 0.758 0.708
2023 0.902 0.788
2024 1.07 0.876
2025 1.28 0.974
2026 1.52 1.08
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 31.0 billion. This corresponds to a present value of 20.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.43 billion. Adding in the terminal value gives a total present value of 25.1 billion.

There are presently 55.4 million outstanding shares, so the intrinsic value per share is 453.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,048,000,000
Current Cash 488,200,000
Current Liabilities 2,280,800,000
Current Debt 115,600,000
Non-Cash Working Capital (NCWC) 1,394,600,000
Change in NCWC 1,078,600,000
EBIT 1,529,200,000
Tax Provision 319,600,000
Depreciation and Amortization 187,600,000
Capital Expenditure -213,800,000
Unlevered Free Cash Flow 2,220,698,862
Current Assets 1,216,600,000
Current Cash 16,600,000
Current Liabilities 950,400,000
Current Debt 66,400,000
Non-Cash Working Capital (NCWC) 316,000,000
Change in NCWC -214,500,000
EBIT 605,200,000
Tax Provision 123,700,000
Depreciation and Amortization 94,700,000
Capital Expenditure -62,700,000
Unlevered Free Cash Flow 276,081,825
Current Assets 1,041,700,000
Current Cash 18,800,000
Current Liabilities 620,500,000
Current Debt 128,100,000
Non-Cash Working Capital (NCWC) 530,500,000
Change in NCWC 158,800,000
EBIT 427,500,000
Tax Provision 144,900,000
Depreciation and Amortization 89,300,000
Capital Expenditure -42,400,000
Unlevered Free Cash Flow 526,692,520
Current Assets 885,700,000
Current Cash 33,900,000
Current Liabilities 612,700,000
Current Debt 132,600,000
Non-Cash Working Capital (NCWC) 371,700,000
Change in NCWC 11,900,000
EBIT 352,700,000
Tax Provision -11,900,000
Depreciation and Amortization 83,400,000
Capital Expenditure -68,200,000
Unlevered Free Cash Flow 379,800,000
Current Assets 881,700,000
Current Cash 120,500,000
Current Liabilities 544,500,000
Current Debt 143,100,000
Non-Cash Working Capital (NCWC) 359,800,000
Change in NCWC -173,700,000
EBIT 397,500,000
Tax Provision 116,600,000
Depreciation and Amortization 80,100,000
Capital Expenditure -69,600,000
Unlevered Free Cash Flow 87,115,179
Current Assets 991,700,000
Current Cash 50,100,000
Current Liabilities 593,100,000
Current Debt 185,000,000
Non-Cash Working Capital (NCWC) 533,500,000
Change in NCWC 134,600,000
EBIT 420,000,000
Tax Provision 139,400,000
Depreciation and Amortization 73,500,000
Capital Expenditure -58,300,000
Unlevered Free Cash Flow 420,709,090
Current Assets 948,600,000
Current Cash 71,400,000
Current Liabilities 613,100,000
Current Debt 134,800,000
Non-Cash Working Capital (NCWC) 398,900,000
Change in NCWC 6,000,000
EBIT 378,600,000
Tax Provision 85,400,000
Depreciation and Amortization 69,000,000
Capital Expenditure -61,700,000
Unlevered Free Cash Flow 259,444,285
Current Assets 935,000,000
Current Cash 89,300,000
Current Liabilities 544,700,000
Current Debt 91,900,000
Non-Cash Working Capital (NCWC) 392,900,000
Change in NCWC 59,100,000
EBIT 356,800,000
Tax Provision 91,200,000
Depreciation and Amortization 64,400,000
Capital Expenditure -87,600,000
Unlevered Free Cash Flow 265,887,217
Current Assets 881,000,000
Current Cash 129,800,000
Current Liabilities 509,800,000
Current Debt 92,400,000
Non-Cash Working Capital (NCWC) 333,800,000
Change in NCWC -102,200,000
EBIT 328,500,000
Tax Provision 92,800,000
Depreciation and Amortization 66,100,000
Capital Expenditure -60,100,000
Unlevered Free Cash Flow 112,281,102
Current Assets 1,000,000,000
Current Cash 131,900,000
Current Liabilities 433,600,000
Current Debt 1,500,000
Non-Cash Working Capital (NCWC) 436,000,000
Change in NCWC 39,800,000
EBIT 261,200,000
Tax Provision 68,600,000
Depreciation and Amortization 62,400,000
Capital Expenditure -69,400,000
Unlevered Free Cash Flow 195,439,383

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