DCF Tool

SRCL

Stericycle Inc. – Sewage Treatment Facilities
stericycle is a global services company. we provide highly specialized solutions serving healthcare organizations and commercial businesses of every size and shape. throughout the last 25 years, we have grown from a small start-up in medical waste management into a leader across a range of increasingly complex and highly regulated arenas, such as: • brand protection solutions • environmental & sustainable solutions • patient & customer communication solutions • regulated waste management & compliance solutions from the start we have challenged the status quo of what a business solution can be. by identifying unmet needs, we have redefined and transformed multiple industries from a narrowly defined service category to a robust suite of solutions that customers need and want. our success with this strategy has landed stericycle among the fortune 1000 list and forbes 25 most innovative companies. a publicly-traded company with $2.5 billion in 2014 revenue, our core purpose is to
Analysis Results
Intrinsic Value $17.05
Latest Price $46.50
Relative Value 173% overvalued
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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 -10.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -10.0%, 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)
2023 144 133
2024 129 112
2025 116 93.3
2026 105 78.0
2027 94.2 65.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1700 million. This corresponds to a present value of 1100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 482 million. Adding in the terminal value gives a total present value of 1580 million.

There are presently 92.5 million outstanding shares, so the intrinsic value per share is 17.05.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 558,700,000
Current Cash 56,000,000
Current Liabilities 621,900,000
Current Debt 25,200,000
Non-Cash Working Capital (NCWC) -94,000,000
Change in NCWC 96,300,000
EBIT 138,100,000
Tax Provision 22,400,000
Depreciation and Amortization 232,500,000
Capital Expenditure -132,200,000
Unlevered Free Cash Flow 295,492,902
Current Assets 575,500,000
Current Cash 55,600,000
Current Liabilities 731,700,000
Current Debt 21,500,000
Non-Cash Working Capital (NCWC) -190,300,000
Change in NCWC -83,400,000
EBIT 70,600,000
Tax Provision 27,500,000
Depreciation and Amortization 223,900,000
Capital Expenditure -116,900,000
Unlevered Free Cash Flow 66,700,000
Current Assets 552,500,000
Current Cash 53,300,000
Current Liabilities 697,100,000
Current Debt 91,000,000
Non-Cash Working Capital (NCWC) -106,900,000
Change in NCWC -126,900,000
EBIT 155,500,000
Tax Provision -100,000
Depreciation and Amortization 233,500,000
Capital Expenditure -119,500,000
Unlevered Free Cash Flow 142,600,000
Current Assets 706,600,000
Current Cash 34,700,000
Current Liabilities 756,900,000
Current Debt 105,000,000
Non-Cash Working Capital (NCWC) 20,000,000
Change in NCWC -78,900,000
EBIT 119,400,000
Tax Provision -16,800,000
Depreciation and Amortization 272,800,000
Capital Expenditure -194,200,000
Unlevered Free Cash Flow 119,100,000
Current Assets 747,300,000
Current Cash 34,300,000
Current Liabilities 733,200,000
Current Debt 119,100,000
Non-Cash Working Capital (NCWC) 98,900,000
Change in NCWC 170,600,000
EBIT 197,600,000
Tax Provision -29,800,000
Depreciation and Amortization 255,900,000
Capital Expenditure -130,800,000
Unlevered Free Cash Flow 493,300,000
Current Assets 813,400,000
Current Cash 42,200,000
Current Liabilities 969,400,000
Current Debt 126,500,000
Non-Cash Working Capital (NCWC) -71,700,000
Change in NCWC -331,036,000
EBIT -7,600,000
Tax Provision -150,900,000
Depreciation and Amortization 249,500,000
Capital Expenditure -143,000,000
Unlevered Free Cash Flow -232,136,000
Current Assets 773,618,000
Current Cash 44,251,000
Current Liabilities 542,853,000
Current Debt 72,822,000
Non-Cash Working Capital (NCWC) 259,336,000
Change in NCWC -20,849,000
EBIT 433,775,000
Tax Provision 120,246,000
Depreciation and Amortization 252,546,000
Capital Expenditure -136,160,000
Unlevered Free Cash Flow 370,358,766
Current Assets 761,828,000
Current Cash 55,703,000
Current Liabilities 587,349,000
Current Debt 161,409,000
Non-Cash Working Capital (NCWC) 280,185,000
Change in NCWC 52,147,000
EBIT 487,612,000
Tax Provision 142,894,000
Depreciation and Amortization 127,412,000
Capital Expenditure -114,761,000
Unlevered Free Cash Flow 382,841,632
Current Assets 580,216,000
Current Cash 22,616,000
Current Liabilities 461,531,000
Current Debt 131,969,000
Non-Cash Working Capital (NCWC) 228,038,000
Change in NCWC 15,981,000
EBIT 556,336,000
Tax Provision 159,422,000
Depreciation and Amortization 104,616,000
Capital Expenditure -86,496,000
Unlevered Free Cash Flow 408,529,660
Current Assets 535,089,000
Current Cash 62,404,000
Current Liabilities 411,008,000
Current Debt 150,380,000
Non-Cash Working Capital (NCWC) 212,057,000
Change in NCWC 45,877,000
EBIT 535,619,000
Tax Provision 164,662,000
Depreciation and Amortization 88,408,000
Capital Expenditure -73,109,000
Unlevered Free Cash Flow 412,186,241
Current Assets 441,286,000
Current Cash 31,827,000
Current Liabilities 331,060,000
Current Debt 87,781,000
Non-Cash Working Capital (NCWC) 166,180,000
Change in NCWC 24,899,000
EBIT 468,836,000
Tax Provision 147,256,000
Depreciation and Amortization 76,283,000
Capital Expenditure -65,236,000
Unlevered Free Cash Flow 339,299,232

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