DCF Tool

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 $488.17
Latest Price $201.35
Relative Value 59% 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 9.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.2%, 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)
2022 1.09 1.01
2023 1.19 1.03
2024 1.3 1.06
2025 1.42 1.08
2026 1.55 1.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 31.2 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 5.28 billion. Adding in the terminal value gives a total present value of 26.0 billion.

There are presently 53.3 million outstanding shares, so the intrinsic value per share is 488.17.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,106,800,000
Current Cash 1,560,000,000
Current Liabilities 1,964,400,000
Current Debt 34,800,000
Non-Cash Working Capital (NCWC) 2,617,200,000
Change in NCWC 1,354,000,000
EBIT 2,250,000,000
Tax Provision 494,000,000
Depreciation and Amortization 209,600,000
Capital Expenditure -140,200,000
Unlevered Free Cash Flow 3,162,788,092
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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