DCF Tool

SUM

Summit Materials Inc – Ready-Mix Concrete Manufacturing
Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and non-residential end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue growth opportunities in new and existing markets.
Analysis Results
Intrinsic Value $32.24
Latest Price $31.25
Relative Value 3% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 3.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.5%, 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 242 224
2023 251 214
2024 259 204
2025 268 195
2026 278 186
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4500 million. This corresponds to a present value of 2790 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1020 million. Adding in the terminal value gives a total present value of 3810 million.

There are presently 118.0 million outstanding shares, so the intrinsic value per share is 32.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 869,610,000
Current Cash 380,961,000
Current Liabilities 309,070,000
Current Debt 23,978,000
Non-Cash Working Capital (NCWC) 203,557,000
Change in NCWC 20,193,000
EBIT 247,165,000
Tax Provision 44,356,000
Depreciation and Amortization 235,278,000
Capital Expenditure -211,982,000
Unlevered Free Cash Flow 235,461,610
Current Assets 893,279,000
Current Cash 418,181,000
Current Liabilities 322,689,000
Current Debt 30,955,000
Non-Cash Working Capital (NCWC) 183,364,000
Change in NCWC -26,250,000
EBIT 217,604,000
Tax Provision -12,185,000
Depreciation and Amortization 227,817,000
Capital Expenditure -177,249,000
Unlevered Free Cash Flow 241,922,000
Current Assets 796,281,000
Current Cash 311,319,000
Current Liabilities 299,297,000
Current Debt 23,949,000
Non-Cash Working Capital (NCWC) 209,614,000
Change in NCWC -14,672,000
EBIT 215,780,000
Tax Provision 17,101,000
Depreciation and Amortization 222,862,000
Capital Expenditure -177,495,000
Unlevered Free Cash Flow 199,302,089
Current Assets 591,540,000
Current Cash 128,508,000
Current Liabilities 260,657,000
Current Debt 21,911,000
Non-Cash Working Capital (NCWC) 224,286,000
Change in NCWC 50,175,000
EBIT 166,704,000
Tax Provision 59,747,000
Depreciation and Amortization 208,772,000
Capital Expenditure -220,685,000
Unlevered Free Cash Flow 101,298,484
Current Assets 783,601,000
Current Cash 383,556,000
Current Liabilities 249,975,000
Current Debt 24,041,000
Non-Cash Working Capital (NCWC) 174,111,000
Change in NCWC 54,827,000
EBIT 228,610,000
Tax Provision -283,977,000
Depreciation and Amortization 193,107,000
Capital Expenditure -194,146,000
Unlevered Free Cash Flow 282,398,000
Current Assets 483,698,000
Current Cash 143,392,000
Current Liabilities 239,288,000
Current Debt 18,266,000
Non-Cash Working Capital (NCWC) 119,284,000
Change in NCWC 25,902,000
EBIT 160,831,000
Tax Provision -5,299,000
Depreciation and Amortization 160,633,000
Capital Expenditure -153,483,000
Unlevered Free Cash Flow 193,883,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.