DCF Tool

TILE

Interface Inc. – Carpet and Rug Mills
Interface, Inc. is a global flooring company specializing in carbon neutral carpet tile and resilient flooring, including luxury vinyl tile (LVT) and nora® rubber flooring. Interface helps its customers create high-performance interior spaces that support well-being, productivity, and creativity, as well as the sustainability of the planet. With its mission, Climate Take Back™, Interface commits to operating in a way that is restorative to the planet and creates a climate fit for life.
Analysis Results
Intrinsic Value $40.31
Latest Price $13.33
Relative Value 67% undervalued
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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 10.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.9%, 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 113 104
2023 125 107
2024 138 110
2025 154 113
2026 170 116
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2890 million. This corresponds to a present value of 1820 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 550 million. Adding in the terminal value gives a total present value of 2370 million.

There are presently 58.8 million outstanding shares, so the intrinsic value per share is 40.31.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 572,340,000
Current Cash 97,252,000
Current Liabilities 261,812,000
Current Debt 15,002,000
Non-Cash Working Capital (NCWC) 228,278,000
Change in NCWC 13,918,000
EBIT 108,418,000
Tax Provision 17,399,000
Depreciation and Amortization 51,981,000
Capital Expenditure -28,071,000
Unlevered Free Cash Flow 120,274,819
Current Assets 495,394,000
Current Cash 103,053,000
Current Liabilities 193,300,000
Current Debt 15,319,000
Non-Cash Working Capital (NCWC) 214,360,000
Change in NCWC -20,221,000
EBIT 77,345,000
Tax Provision -7,491,000
Depreciation and Amortization 51,377,000
Capital Expenditure -62,949,000
Unlevered Free Cash Flow 45,552,000
Current Assets 548,135,000
Current Cash 81,301,000
Current Liabilities 263,275,000
Current Debt 31,022,000
Non-Cash Working Capital (NCWC) 234,581,000
Change in NCWC -51,037,000
EBIT 143,850,000
Tax Provision 22,616,000
Depreciation and Amortization 50,835,000
Capital Expenditure -74,647,000
Unlevered Free Cash Flow 37,048,147
Current Assets 558,879,000
Current Cash 80,989,000
Current Liabilities 223,587,000
Current Debt 31,315,000
Non-Cash Working Capital (NCWC) 285,618,000
Change in NCWC 103,434,000
EBIT 96,908,000
Tax Provision 4,738,000
Depreciation and Amortization 44,471,000
Capital Expenditure -54,857,000
Unlevered Free Cash Flow 181,606,450
Current Assets 430,867,000
Current Cash 87,037,000
Current Liabilities 176,646,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 182,184,000
Change in NCWC 11,027,000
EBIT 117,143,000
Tax Provision 47,293,000
Depreciation and Amortization 30,261,000
Capital Expenditure -30,474,000
Unlevered Free Cash Flow 72,853,568
Current Assets 480,912,000
Current Cash 165,672,000
Current Liabilities 159,083,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 171,157,000
Change in NCWC -9,788,000
EBIT 104,725,000
Tax Provision 24,974,000
Depreciation and Amortization 30,632,000
Capital Expenditure -28,071,000
Unlevered Free Cash Flow 64,448,538
Current Assets 398,408,000
Current Cash 75,696,000
Current Liabilities 153,017,000
Current Debt 11,250,000
Non-Cash Working Capital (NCWC) 180,945,000
Change in NCWC -5,040,000
EBIT 113,593,000
Tax Provision 33,348,000
Depreciation and Amortization 30,803,000
Capital Expenditure -27,188,000
Unlevered Free Cash Flow 76,352,148
Current Assets 384,668,000
Current Cash 54,896,000
Current Liabilities 143,787,000
Current Debt 0
Non-Cash Working Capital (NCWC) 185,985,000
Change in NCWC 950,000
EBIT 82,681,000
Tax Provision 10,934,000
Depreciation and Amortization 30,677,000
Capital Expenditure -38,922,000
Unlevered Free Cash Flow 50,092,674
Current Assets 388,105,000
Current Cash 72,883,000
Current Liabilities 130,187,000
Current Debt 0
Non-Cash Working Capital (NCWC) 185,035,000
Change in NCWC -1,367,000
EBIT 88,676,000
Tax Provision 20,749,000
Depreciation and Amortization 24,670,000
Capital Expenditure -91,851,000
Unlevered Free Cash Flow -6,536,227
Current Assets 430,651,000
Current Cash 90,533,000
Current Liabilities 161,826,000
Current Debt 8,110,000
Non-Cash Working Capital (NCWC) 186,402,000
Change in NCWC -19,774,000
EBIT 85,821,000
Tax Provision 15,204,000
Depreciation and Amortization 25,882,000
Capital Expenditure -42,428,000
Unlevered Free Cash Flow 15,256,387

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