DCF Tool

SMP

Standard Motor Products, Inc. – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
With over 100 years in business, Standard Motor Products, Inc. is a leading independent manufacturer and distributor of premium automotive replacement parts. SMP supplies independent professional technicians and do-it-yourselfers with high quality replacement parts for engine management, ignition, emissions, fuel and safety-related systems, as well as temperature control products for domestic and import cars and light trucks. SMPĀ® products are sold worldwide through both traditional and non- traditional distribution channels.
Analysis Results
Intrinsic Value $220.81
Latest Price $38.70
Relative Value 82% 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 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, 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 (million) Present value (million)
2022 145 137
2023 165 146
2024 187 156
2025 211 166
2026 240 177
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5800 million. This corresponds to a present value of 4040 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 782 million. Adding in the terminal value gives a total present value of 4820 million.

There are presently 21.8 million outstanding shares, so the intrinsic value per share is 220.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 711,205,000
Current Cash 21,755,000
Current Liabilities 476,369,000
Current Debt 128,415,000
Non-Cash Working Capital (NCWC) 341,496,000
Change in NCWC 54,915,000
EBIT 132,686,000
Tax Provision 31,044,000
Depreciation and Amortization 27,243,000
Capital Expenditure -25,875,000
Unlevered Free Cash Flow 157,396,515
Current Assets 598,536,000
Current Cash 19,488,000
Current Liabilities 302,602,000
Current Debt 10,135,000
Non-Cash Working Capital (NCWC) 286,581,000
Change in NCWC 68,000
EBIT 112,779,000
Tax Provision 26,962,000
Depreciation and Amortization 26,323,000
Capital Expenditure -17,820,000
Unlevered Free Cash Flow 93,032,103
Current Assets 549,433,000
Current Cash 10,372,000
Current Liabilities 309,464,000
Current Debt 56,916,000
Non-Cash Working Capital (NCWC) 286,513,000
Change in NCWC 14,947,000
EBIT 99,945,000
Tax Provision 22,745,000
Depreciation and Amortization 25,809,000
Capital Expenditure -16,185,000
Unlevered Free Cash Flow 99,751,859
Current Assets 546,224,000
Current Cash 11,138,000
Current Liabilities 312,586,000
Current Debt 49,066,000
Non-Cash Working Capital (NCWC) 271,566,000
Change in NCWC 16,996,000
EBIT 85,010,000
Tax Provision 19,977,000
Depreciation and Amortization 24,104,000
Capital Expenditure -20,141,000
Unlevered Free Cash Flow 83,865,359
Current Assets 496,091,000
Current Cash 17,323,000
Current Liabilities 285,897,000
Current Debt 61,699,000
Non-Cash Working Capital (NCWC) 254,570,000
Change in NCWC -11,496,000
EBIT 103,745,000
Tax Provision 52,812,000
Depreciation and Amortization 23,916,000
Capital Expenditure -24,442,000
Unlevered Free Cash Flow 34,911,849
Current Assets 514,848,000
Current Cash 19,796,000
Current Liabilities 283,841,000
Current Debt 54,855,000
Non-Cash Working Capital (NCWC) 266,066,000
Change in NCWC 1,599,000
EBIT 104,053,000
Tax Provision 36,158,000
Depreciation and Amortization 20,457,000
Capital Expenditure -20,921,000
Unlevered Free Cash Flow 67,018,695
Current Assets 479,740,000
Current Cash 18,800,000
Current Liabilities 243,916,000
Current Debt 47,443,000
Non-Cash Working Capital (NCWC) 264,467,000
Change in NCWC 6,258,000
EBIT 76,702,000
Tax Provision 25,983,000
Depreciation and Amortization 17,637,000
Capital Expenditure -18,047,000
Unlevered Free Cash Flow 55,655,703
Current Assets 466,033,000
Current Cash 13,728,000
Current Liabilities 250,829,000
Current Debt 56,733,000
Non-Cash Working Capital (NCWC) 258,209,000
Change in NCWC 16,542,000
EBIT 96,363,000
Tax Provision 28,854,000
Depreciation and Amortization 17,295,000
Capital Expenditure -13,904,000
Unlevered Free Cash Flow 82,285,529
Current Assets 446,077,000
Current Cash 5,559,000
Current Liabilities 220,316,000
Current Debt 21,465,000
Non-Cash Working Capital (NCWC) 241,667,000
Change in NCWC 17,787,000
EBIT 89,935,000
Tax Provision 31,919,000
Depreciation and Amortization 17,595,000
Capital Expenditure -11,410,000
Unlevered Free Cash Flow 80,119,715
Current Assets 418,553,000
Current Cash 13,074,000
Current Liabilities 222,172,000
Current Debt 40,573,000
Non-Cash Working Capital (NCWC) 223,880,000
Change in NCWC -10,464,000
EBIT 72,868,000
Tax Provision 24,978,000
Depreciation and Amortization 16,466,000
Capital Expenditure -11,811,000
Unlevered Free Cash Flow 40,271,990

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