DCF Tool

SSD

Simpson Manufacturing Co., Inc. – Prefabricated Wood Building Manufacturing
Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products, including adhesives, specialty chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials.
Analysis Results
Intrinsic Value $723.25
Latest Price $101.49
Relative Value 86% 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 48.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 48.0%, 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 (billion) Present value (billion)
2022 0.594 0.546
2023 0.879 0.742
2024 1.3 1.01
2025 1.93 1.37
2026 2.85 1.87
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 42.6 billion. This corresponds to a present value of 25.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.54 billion. Adding in the terminal value gives a total present value of 31.2 billion.

There are presently 43.2 million outstanding shares, so the intrinsic value per share is 723.25.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 998,835,000
Current Cash 301,155,000
Current Liabilities 244,602,000
Current Debt 0
Non-Cash Working Capital (NCWC) 453,078,000
Change in NCWC 168,639,000
EBIT 367,469,000
Tax Provision 92,102,000
Depreciation and Amortization 42,477,000
Capital Expenditure -49,594,000
Unlevered Free Cash Flow 434,597,681
Current Assets 753,139,000
Current Cash 274,639,000
Current Liabilities 194,061,000
Current Debt 0
Non-Cash Working Capital (NCWC) 284,439,000
Change in NCWC 32,649,000
EBIT 252,031,000
Tax Provision 62,564,000
Depreciation and Amortization 38,767,000
Capital Expenditure -37,909,000
Unlevered Free Cash Flow 222,355,539
Current Assets 640,907,000
Current Cash 230,210,000
Current Liabilities 158,907,000
Current Debt 0
Non-Cash Working Capital (NCWC) 251,790,000
Change in NCWC -35,979,000
EBIT 175,230,000
Tax Provision 44,375,000
Depreciation and Amortization 38,402,000
Capital Expenditure -37,526,000
Unlevered Free Cash Flow 96,529,993
Current Assets 599,529,000
Current Cash 160,180,000
Current Liabilities 151,580,000
Current Debt 0
Non-Cash Working Capital (NCWC) 287,769,000
Change in NCWC 7,778,000
EBIT 168,376,000
Tax Provision 45,495,000
Depreciation and Amortization 39,393,000
Capital Expenditure -29,310,000
Unlevered Free Cash Flow 141,733,687
Current Assets 583,941,000
Current Cash 168,514,000
Current Liabilities 136,491,000
Current Debt 1,055,000
Non-Cash Working Capital (NCWC) 279,991,000
Change in NCWC 30,077,000
EBIT 138,921,000
Tax Provision 51,801,000
Depreciation and Amortization 33,724,000
Capital Expenditure -58,041,000
Unlevered Free Cash Flow 94,851,707
Current Assets 585,247,000
Current Cash 226,537,000
Current Liabilities 108,796,000
Current Debt 0
Non-Cash Working Capital (NCWC) 249,914,000
Change in NCWC 14,431,000
EBIT 138,697,000
Tax Provision 49,166,000
Depreciation and Amortization 27,927,000
Capital Expenditure -42,002,000
Unlevered Free Cash Flow 89,958,855
Current Assets 589,272,000
Current Cash 258,825,000
Current Liabilities 94,964,000
Current Debt 0
Non-Cash Working Capital (NCWC) 235,483,000
Change in NCWC -14,066,000
EBIT 108,632,000
Tax Provision 40,791,000
Depreciation and Amortization 26,821,000
Capital Expenditure -34,186,000
Unlevered Free Cash Flow 46,427,640
Current Assets 604,318,000
Current Cash 260,307,000
Current Liabilities 94,480,000
Current Debt 18,000
Non-Cash Working Capital (NCWC) 249,549,000
Change in NCWC 35,753,000
EBIT 99,481,000
Tax Provision 35,791,000
Depreciation and Amortization 27,918,000
Capital Expenditure -23,715,000
Unlevered Free Cash Flow 103,588,703
Current Assets 568,106,000
Current Cash 251,208,000
Current Liabilities 103,205,000
Current Debt 103,000
Non-Cash Working Capital (NCWC) 213,796,000
Change in NCWC -13,368,000
EBIT 83,516,000
Tax Provision 30,593,000
Depreciation and Amortization 27,518,000
Capital Expenditure -16,804,000
Unlevered Free Cash Flow 49,536,844
Current Assets 498,054,000
Current Cash 175,553,000
Current Liabilities 95,515,000
Current Debt 178,000
Non-Cash Working Capital (NCWC) 227,164,000
Change in NCWC 10,504,000
EBIT 64,221,000
Tax Provision 20,003,000
Depreciation and Amortization 26,857,000
Capital Expenditure -21,961,000
Unlevered Free Cash Flow 58,875,006

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