DCF Tool

SON

Sonoco Products Co. – Other Paperboard Container Manufacturing
a global supplier of innovative packaging solutions, bringing more to packaging than just the package. about us: 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 $4.8 billion, we have 20,000 employees working in more than 300 operations in 33 countries, serving some of the world's best known brands in some 85 nations. for more information about us, visit www.sonoco.com. what we do: sonoco is the world's largest producer of paperboard containers, and a leading manufacturer of tubes and cores; convenience closures; consumer and industrial thermoformed plastic packaging; engineered molded and extruded plastic products; protective, temperature and retail assurance packaging. awards and accolades: third-party organizations regularly recognize us for our corporate citizenship. we've been listed in the dow jones sustainability
Analysis Results
Intrinsic Value $308.38
Latest Price $54.02
Relative Value 82% 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 16.9%.

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 16.9%, 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 (billion) Present value (billion)
2023 0.976 0.912
2024 1.14 0.996
2025 1.33 1.09
2026 1.56 1.19
2027 1.82 1.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.1 billion. This corresponds to a present value of 24.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.48 billion. Adding in the terminal value gives a total present value of 30.2 billion.

There are presently 98.0 million outstanding shares, so the intrinsic value per share is 308.38.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,361,254,000
Current Cash 227,438,000
Current Liabilities 1,743,901,000
Current Debt 502,440,000
Non-Cash Working Capital (NCWC) 892,355,000
Change in NCWC 518,862,000
EBIT 746,513,000
Tax Provision 118,509,000
Depreciation and Amortization 308,824,000
Capital Expenditure -328,769,000
Unlevered Free Cash Flow 1,094,328,084
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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