DCF Tool

STE

Steris Plc – Surgical and Medical Instrument Manufacturing
STERIS’s MISSION IS TO HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science product and service solutions around the globe by providing innovative healthcare and life science product and service solutions around the globe.
Analysis Results
Intrinsic Value $414.28
Latest Price $160.72
Relative Value 61% 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 27.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.1%, 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 1.04 0.969
2024 1.32 1.15
2025 1.68 1.36
2026 2.13 1.61
2027 2.71 1.91
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 52.5 billion. This corresponds to a present value of 34.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.99 billion. Adding in the terminal value gives a total present value of 41.4 billion.

There are presently 100.0 million outstanding shares, so the intrinsic value per share is 414.28.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,878,997,000
Current Cash 348,320,000
Current Liabilities 922,222,000
Current Debt 142,875,000
Non-Cash Working Capital (NCWC) 751,330,000
Change in NCWC 338,027,000
EBIT 425,666,000
Tax Provision 71,633,000
Depreciation and Amortization 553,104,000
Capital Expenditure -287,563,000
Unlevered Free Cash Flow 932,281,880
Current Assets 1,211,754,000
Current Cash 220,531,000
Current Liabilities 577,920,000
Current Debt 0
Non-Cash Working Capital (NCWC) 413,303,000
Change in NCWC 27,740,000
EBIT 545,454,000
Tax Provision 120,663,000
Depreciation and Amortization 219,237,000
Capital Expenditure -239,262,000
Unlevered Free Cash Flow 425,996,209
Current Assets 1,208,751,000
Current Cash 319,581,000
Current Liabilities 503,607,000
Current Debt 0
Non-Cash Working Capital (NCWC) 385,563,000
Change in NCWC 17,657,000
EBIT 537,646,000
Tax Provision 90,876,000
Depreciation and Amortization 197,235,000
Capital Expenditure -214,516,000
Unlevered Free Cash Flow 440,045,301
Current Assets 1,053,735,000
Current Cash 220,633,000
Current Liabilities 465,196,000
Current Debt 0
Non-Cash Working Capital (NCWC) 367,906,000
Change in NCWC -21,755,000
EBIT 442,452,000
Tax Provision 64,394,000
Depreciation and Amortization 225,921,000
Capital Expenditure -189,715,000
Unlevered Free Cash Flow 379,789,150
Current Assets 989,657,000
Current Cash 201,534,000
Current Liabilities 398,462,000
Current Debt 0
Non-Cash Working Capital (NCWC) 389,661,000
Change in NCWC 36,360,000
EBIT 403,557,000
Tax Provision 63,360,000
Depreciation and Amortization 178,332,000
Capital Expenditure -165,457,000
Unlevered Free Cash Flow 380,761,949
Current Assets 1,017,802,000
Current Cash 282,918,000
Current Liabilities 381,583,000
Current Debt 0
Non-Cash Working Capital (NCWC) 353,301,000
Change in NCWC 30,223,000
EBIT 286,166,000
Tax Provision 74,015,000
Depreciation and Amortization 188,142,000
Capital Expenditure -172,901,000
Unlevered Free Cash Flow 216,920,899
Current Assets 972,525,000
Current Cash 248,841,000
Current Liabilities 400,606,000
Current Debt 0
Non-Cash Working Capital (NCWC) 323,078,000
Change in NCWC 53,666,000
EBIT 212,107,000
Tax Provision 60,299,000
Depreciation and Amortization 143,740,000
Capital Expenditure -126,407,000
Unlevered Free Cash Flow 208,696,281
Current Assets 720,432,000
Current Cash 167,689,000
Current Liabilities 283,331,000
Current Debt 0
Non-Cash Working Capital (NCWC) 269,412,000
Change in NCWC 1,975,000
EBIT 226,820,000
Tax Provision 73,756,000
Depreciation and Amortization 91,541,000
Capital Expenditure -85,255,000
Unlevered Free Cash Flow 154,967,333
Current Assets 674,745,000
Current Cash 152,802,000
Current Liabilities 254,506,000
Current Debt 0
Non-Cash Working Capital (NCWC) 267,437,000
Change in NCWC 14,342,000
EBIT 220,011,000
Tax Provision 58,934,000
Depreciation and Amortization 75,649,000
Capital Expenditure -86,367,000
Unlevered Free Cash Flow 154,803,894
Current Assets 613,940,000
Current Cash 142,008,000
Current Liabilities 218,837,000
Current Debt 0
Non-Cash Working Capital (NCWC) 253,095,000
Change in NCWC 30,428,000
EBIT 242,264,000
Tax Provision 67,121,000
Depreciation and Amortization 69,035,000
Capital Expenditure -87,412,000
Unlevered Free Cash Flow 182,711,542
Current Assets 651,883,000
Current Cash 150,821,000
Current Liabilities 278,395,000
Current Debt 0
Non-Cash Working Capital (NCWC) 222,667,000
Change in NCWC 54,623,000
EBIT 222,960,000
Tax Provision 74,993,000
Depreciation and Amortization 62,906,000
Capital Expenditure -66,682,000
Unlevered Free Cash Flow 194,603,751

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