DCF Tool

SON

Sonoco Products Co. – Other Paperboard Container Manufacturing
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5.4 billion, the Company has 23,000 employees working in approximately 300 operations in 36 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support its corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2020 as well as Barron’s 100 Most Sustainable Companies.
Analysis Results
Intrinsic Value $209.06
Latest Price $63.19
Relative Value 70% 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 10.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.9%, 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 653 615
2023 724 643
2024 803 672
2025 891 702
2026 987 733
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 24300 million. This corresponds to a present value of 17000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3360 million. Adding in the terminal value gives a total present value of 20400 million.

There are presently 97.5 million outstanding shares, so the intrinsic value per share is 209.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,658,677,000
Current Cash 170,978,000
Current Liabilities 1,525,763,000
Current Debt 411,557,000
Non-Cash Working Capital (NCWC) 373,493,000
Change in NCWC 163,637,000
EBIT 514,571,000
Tax Provision -67,430,000
Depreciation and Amortization 239,086,000
Capital Expenditure -256,019,000
Unlevered Free Cash Flow 661,275,000
Current Assets 1,830,547,000
Current Cash 564,848,000
Current Liabilities 1,511,627,000
Current Debt 455,784,000
Non-Cash Working Capital (NCWC) 209,856,000
Change in NCWC -249,799,000
EBIT 522,579,000
Tax Provision 53,030,000
Depreciation and Amortization 255,359,000
Capital Expenditure -194,127,000
Unlevered Free Cash Flow 227,536,962
Current Assets 1,521,196,000
Current Cash 145,283,000
Current Liabilities 1,404,492,000
Current Debt 488,234,000
Non-Cash Working Capital (NCWC) 459,655,000
Change in NCWC -51,743,000
EBIT 532,133,000
Tax Provision 93,269,000
Depreciation and Amortization 239,140,000
Capital Expenditure -195,934,000
Unlevered Free Cash Flow 394,995,962
Current Assets 1,519,272,000
Current Cash 120,389,000
Current Liabilities 1,082,930,000
Current Debt 195,445,000
Non-Cash Working Capital (NCWC) 511,398,000
Change in NCWC 43,317,000
EBIT 488,916,000
Tax Provision 75,008,000
Depreciation and Amortization 236,245,000
Capital Expenditure -192,574,000
Unlevered Free Cash Flow 481,810,623
Current Assets 1,563,636,000
Current Cash 254,912,000
Current Liabilities 999,970,000
Current Debt 159,327,000
Non-Cash Working Capital (NCWC) 468,081,000
Change in NCWC 147,110,000
EBIT 415,200,000
Tax Provision 146,589,000
Depreciation and Amortization 217,625,000
Capital Expenditure -188,913,000
Unlevered Free Cash Flow 403,191,781
Current Assets 1,348,768,000
Current Cash 257,226,000
Current Liabilities 802,616,000
Current Debt 32,045,000
Non-Cash Working Capital (NCWC) 320,971,000
Change in NCWC 5,446,000
EBIT 442,660,000
Tax Provision 164,631,000
Depreciation and Amortization 205,182,000
Capital Expenditure -186,741,000
Unlevered Free Cash Flow 305,500,312
Current Assets 1,307,378,000
Current Cash 182,434,000
Current Liabilities 922,516,000
Current Debt 113,097,000
Non-Cash Working Capital (NCWC) 315,525,000
Change in NCWC -37,183,000
EBIT 443,597,000
Tax Provision 87,738,000
Depreciation and Amortization 213,161,000
Capital Expenditure -192,295,000
Unlevered Free Cash Flow 312,254,336
Current Assets 1,373,789,000
Current Cash 161,168,000
Current Liabilities 912,193,000
Current Debt 52,280,000
Non-Cash Working Capital (NCWC) 352,708,000
Change in NCWC 23,825,000
EBIT 410,776,000
Tax Provision 108,758,000
Depreciation and Amortization 198,718,000
Capital Expenditure -177,076,000
Unlevered Free Cash Flow 323,119,912
Current Assets 1,378,474,000
Current Cash 217,567,000
Current Liabilities 867,225,000
Current Debt 35,201,000
Non-Cash Working Capital (NCWC) 328,883,000
Change in NCWC -27,302,000
EBIT 398,362,000
Tax Provision 96,203,000
Depreciation and Amortization 197,671,000
Capital Expenditure -172,442,000
Unlevered Free Cash Flow 275,240,795
Current Assets 1,499,896,000
Current Cash 373,084,000
Current Liabilities 1,044,235,000
Current Debt 273,608,000
Non-Cash Working Capital (NCWC) 356,185,000
Change in NCWC 1,734,000
EBIT 392,722,000
Tax Provision 103,759,000
Depreciation and Amortization 200,403,000
Capital Expenditure -214,862,000
Unlevered Free Cash Flow 244,114,053

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