DCF Tool

SWK

Stanley Black & Decker Inc – Saw Blade and Handtool Manufacturing
Stanley Black & Decker is a purpose-driven, $14.5 billion revenue industrial organization. Stanley Black & Decker has 53,000 employees in more than 60 countries and operates the world's largest tools and storage business, the world's second-largest commercial electronic security services company, a leading engineered fastening business as well as Oil & Gas and Infrastructure businesses. The company's iconic brands include BLACK+DECKER, Bostitch, CRAFTSMAN, DEWALT, FACOM, IRWIN, LENOX, Porter Cable and STANLEY. Stanley Black & Decker is a company for the makers and innovators, the craftsmen and the caregivers, and those doing the hard work to make the world a better place.
Analysis Results
Intrinsic Value $419.78
Latest Price $119.20
Relative Value 72% 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 13.3%.

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 13.3%, 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 2.28 2.13
2023 2.58 2.25
2024 2.92 2.39
2025 3.31 2.53
2026 3.75 2.68
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 77.0 billion. This corresponds to a present value of 51.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.0 billion. Adding in the terminal value gives a total present value of 63.4 billion.

There are presently 151.0 million outstanding shares, so the intrinsic value per share is 419.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,526,400,000
Current Cash 142,300,000
Current Liabilities 8,767,400,000
Current Debt 2,242,400,000
Non-Cash Working Capital (NCWC) 1,859,100,000
Change in NCWC 1,760,900,000
EBIT 1,850,700,000
Tax Provision 61,400,000
Depreciation and Amortization 577,100,000
Capital Expenditure -519,100,000
Unlevered Free Cash Flow 3,601,146,397
Current Assets 6,036,000,000
Current Cash 1,381,000,000
Current Liabilities 4,558,300,000
Current Debt 1,500,000
Non-Cash Working Capital (NCWC) 98,200,000
Change in NCWC 4,600,000
EBIT 1,624,600,000
Tax Provision 41,400,000
Depreciation and Amortization 578,100,000
Capital Expenditure -348,100,000
Unlevered Free Cash Flow 1,806,493,754
Current Assets 4,456,600,000
Current Cash 297,700,000
Current Liabilities 4,405,700,000
Current Debt 340,400,000
Non-Cash Working Capital (NCWC) 93,600,000
Change in NCWC -564,100,000
EBIT 1,504,200,000
Tax Provision 160,800,000
Depreciation and Amortization 560,200,000
Capital Expenditure -424,700,000
Unlevered Free Cash Flow 859,408,223
Current Assets 4,569,400,000
Current Cash 288,700,000
Current Liabilities 4,001,600,000
Current Debt 378,600,000
Non-Cash Working Capital (NCWC) 657,700,000
Change in NCWC 102,200,000
EBIT 1,392,400,000
Tax Provision 416,300,000
Depreciation and Amortization 506,500,000
Capital Expenditure -492,100,000
Unlevered Free Cash Flow 941,877,291
Current Assets 4,566,100,000
Current Cash 637,500,000
Current Liabilities 4,361,800,000
Current Debt 988,700,000
Non-Cash Working Capital (NCWC) 555,500,000
Change in NCWC -305,800,000
EBIT 1,508,200,000
Tax Provision 300,500,000
Depreciation and Amortization 460,700,000
Capital Expenditure -442,400,000
Unlevered Free Cash Flow 923,724,637
Current Assets 4,788,500,000
Current Cash 1,131,800,000
Current Liabilities 2,807,500,000
Current Debt 12,100,000
Non-Cash Working Capital (NCWC) 861,300,000
Change in NCWC 459,600,000
EBIT 1,446,400,000
Tax Provision 261,200,000
Depreciation and Amortization 408,000,000
Capital Expenditure -347,000,000
Unlevered Free Cash Flow 1,658,868,787
Current Assets 3,662,100,000
Current Cash 465,400,000
Current Liabilities 2,802,600,000
Current Debt 7,600,000
Non-Cash Working Capital (NCWC) 401,700,000
Change in NCWC -226,000,000
EBIT 1,363,600,000
Tax Provision 248,600,000
Depreciation and Amortization 414,000,000
Capital Expenditure -311,400,000
Unlevered Free Cash Flow 945,630,170
Current Assets 3,948,800,000
Current Cash 496,600,000
Current Liabilities 2,832,000,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 627,700,000
Change in NCWC -26,400,000
EBIT 1,267,100,000
Tax Provision 227,100,000
Depreciation and Amortization 449,800,000
Capital Expenditure -291,000,000
Unlevered Free Cash Flow 1,134,235,978
Current Assets 3,968,700,000
Current Cash 496,200,000
Current Liabilities 3,221,000,000
Current Debt 402,600,000
Non-Cash Working Capital (NCWC) 654,100,000
Change in NCWC 333,700,000
EBIT 930,900,000
Tax Provision 69,300,000
Depreciation and Amortization 441,300,000
Capital Expenditure -365,600,000
Unlevered Free Cash Flow 1,230,324,940
Current Assets 4,098,300,000
Current Cash 716,000,000
Current Liabilities 3,073,400,000
Current Debt 11,500,000
Non-Cash Working Capital (NCWC) 320,400,000
Change in NCWC -353,500,000
EBIT 882,300,000
Tax Provision 78,900,000
Depreciation and Amortization 445,300,000
Capital Expenditure -386,000,000
Unlevered Free Cash Flow 456,156,349

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