SNA Intrinsic Value

SNA

Snap-on, Inc. – Other Automotive Mechanical and Electrical Repair and Maintenance

Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. Snap-on also derives income from various financing programs to facilitate the sales of its products and support its franchise business. Products and services are sold through the company's franchisee, company-direct, distributor and internet channels. Founded in 1920, Snap-on is a $3.6 billion, S&P 500 company headquartered in Kenosha, Wisconsin.

Analysis Results

Intrinsic Value	$999.81
Latest Price	$239.08
Relative Value	76% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 10.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.2%, 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	1.26	1.22
2024	1.39	1.31
2025	1.54	1.39
2026	1.69	1.49
2027	1.87	1.59

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 56.0 billion. This corresponds to a present value of 46.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.0 billion. Adding in the terminal value gives a total present value of 53.1 billion.

There are presently 53.1 million outstanding shares, so the intrinsic value per share is 999.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	3,368,900,000
Current Cash	757,200,000
Current Liabilities	971,600,000
Current Debt	17,200,000
Non-Cash Working Capital (NCWC)	1,657,300,000
Change in NCWC	348,700,000
EBIT	1,207,200,000
Tax Provision	268,700,000
Depreciation and Amortization	100,200,000
Capital Expenditure	-84,200,000
Unlevered Free Cash Flow	1,302,172,210

Current Assets	3,053,400,000
Current Cash	780,000,000
Current Liabilities	982,200,000
Current Debt	17,400,000
Non-Cash Working Capital (NCWC)	1,308,600,000
Change in NCWC	45,400,000
EBIT	1,125,000,000
Tax Provision	247,000,000
Depreciation and Amortization	104,800,000
Capital Expenditure	-70,100,000
Unlevered Free Cash Flow	949,794,046

Current Assets	3,083,000,000
Current Cash	923,400,000
Current Liabilities	1,164,900,000
Current Debt	268,500,000
Non-Cash Working Capital (NCWC)	1,263,200,000
Change in NCWC	-188,100,000
EBIT	880,800,000
Tax Provision	189,100,000
Depreciation and Amortization	96,700,000
Capital Expenditure	-65,600,000
Unlevered Free Cash Flow	524,447,181

Current Assets	2,380,500,000
Current Cash	184,500,000
Current Liabilities	947,600,000
Current Debt	202,900,000
Non-Cash Working Capital (NCWC)	1,451,300,000
Change in NCWC	141,000,000
EBIT	963,200,000
Tax Provision	211,800,000
Depreciation and Amortization	92,400,000
Capital Expenditure	-99,400,000
Unlevered Free Cash Flow	876,175,341

Current Assets	2,216,900,000
Current Cash	140,900,000
Current Liabilities	952,000,000
Current Debt	186,300,000
Non-Cash Working Capital (NCWC)	1,310,300,000
Change in NCWC	43,100,000
EBIT	956,800,000
Tax Provision	214,400,000
Depreciation and Amortization	94,100,000
Capital Expenditure	-90,900,000
Unlevered Free Cash Flow	777,822,249

Current Assets	2,119,300,000
Current Cash	92,000,000
Current Liabilities	1,193,300,000
Current Debt	433,200,000
Non-Cash Working Capital (NCWC)	1,267,200,000
Change in NCWC	148,900,000
EBIT	882,700,000
Tax Provision	250,900,000
Depreciation and Amortization	93,200,000
Capital Expenditure	-82,000,000
Unlevered Free Cash Flow	773,732,535

Current Assets	1,884,000,000
Current Cash	77,600,000
Current Liabilities	989,500,000
Current Debt	301,400,000
Non-Cash Working Capital (NCWC)	1,118,300,000
Change in NCWC	-35,500,000
EBIT	856,700,000
Tax Provision	244,300,000
Depreciation and Amortization	85,600,000
Capital Expenditure	-74,300,000
Unlevered Free Cash Flow	572,154,422

Current Assets	1,898,700,000
Current Cash	92,800,000
Current Liabilities	670,500,000
Current Debt	18,400,000
Non-Cash Working Capital (NCWC)	1,153,800,000
Change in NCWC	90,200,000
EBIT	766,100,000
Tax Provision	221,200,000
Depreciation and Amortization	82,500,000
Capital Expenditure	-80,400,000
Unlevered Free Cash Flow	620,325,653

Current Assets	1,858,600,000
Current Cash	132,900,000
Current Liabilities	718,700,000
Current Debt	56,600,000
Non-Cash Working Capital (NCWC)	1,063,600,000
Change in NCWC	87,300,000
EBIT	685,400,000
Tax Provision	199,500,000
Depreciation and Amortization	79,500,000
Capital Expenditure	-80,600,000
Unlevered Free Cash Flow	555,106,491

Current Assets	1,796,200,000
Current Cash	217,600,000
Current Liabilities	715,400,000
Current Debt	113,100,000
Non-Cash Working Capital (NCWC)	976,300,000
Change in NCWC	105,800,000
EBIT	586,400,000
Tax Provision	166,700,000
Depreciation and Amortization	76,700,000
Capital Expenditure	-70,600,000
Unlevered Free Cash Flow	512,599,240

Current Assets	1,669,000,000
Current Cash	214,500,000
Current Liabilities	589,200,000
Current Debt	5,200,000
Non-Cash Working Capital (NCWC)	870,500,000
Change in NCWC	93,000,000
EBIT	519,000,000
Tax Provision	148,200,000
Depreciation and Amortization	76,700,000
Capital Expenditure	-79,400,000
Unlevered Free Cash Flow	443,103,370

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