DCF Tool

TTC

Toro Co. – Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing
the toro company (nyse: ttc) is a leading worldwide provider of innovative solutions for the outdoor environment including turf, snow and ground engaging equipment, and irrigation and outdoor lighting solutions. with sales of $2.2 billion in fiscal 2014, toro’s global presence extends to more than 90 countries. through constant innovation and caring relationships built on trust and integrity, toro and its family of brands have built a legacy of excellence by helping customers care for golf courses, landscapes, sports fields, public green spaces, commercial and residential properties and agricultural fields. for more information, visit www.toro.com.
Analysis Results
Intrinsic Value $332.41
Latest Price $85.72
Relative Value 74% 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 17.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.4%, 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 0.678 0.651
2024 0.796 0.734
2025 0.935 0.828
2026 1.1 0.933
2027 1.29 1.05
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 38.7 billion. This corresponds to a present value of 30.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.2 billion. Adding in the terminal value gives a total present value of 34.5 billion.

There are presently 104.0 million outstanding shares, so the intrinsic value per share is 332.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,675,351,000
Current Cash 188,250,000
Current Liabilities 1,063,613,000
Current Debt 0
Non-Cash Working Capital (NCWC) 423,488,000
Change in NCWC 276,934,000
EBIT 575,663,000
Tax Provision 109,204,000
Depreciation and Amortization 108,809,000
Capital Expenditure -143,478,000
Unlevered Free Cash Flow 704,155,205
Current Assets 1,489,185,000
Current Cash 405,612,000
Current Liabilities 937,019,000
Current Debt 0
Non-Cash Working Capital (NCWC) 146,554,000
Change in NCWC -45,278,000
EBIT 518,280,000
Tax Provision 89,938,000
Depreciation and Amortization 99,316,000
Capital Expenditure -104,012,000
Unlevered Free Cash Flow 375,045,920
Current Assets 1,427,648,000
Current Cash 479,892,000
Current Liabilities 855,797,000
Current Debt 99,873,000
Non-Cash Working Capital (NCWC) 191,832,000
Change in NCWC -102,175,000
EBIT 426,357,000
Tax Provision 77,369,000
Depreciation and Amortization 95,615,000
Capital Expenditure -78,068,000
Unlevered Free Cash Flow 260,694,252
Current Assets 1,122,891,000
Current Cash 151,828,000
Current Liabilities 756,970,000
Current Debt 79,914,000
Non-Cash Working Capital (NCWC) 294,007,000
Change in NCWC 221,129,000
EBIT 325,029,000
Tax Provision 48,150,000
Depreciation and Amortization 87,698,000
Capital Expenditure -92,881,000
Unlevered Free Cash Flow 492,392,127
Current Assets 894,637,000
Current Cash 289,124,000
Current Liabilities 532,635,000
Current Debt 0
Non-Cash Working Capital (NCWC) 72,878,000
Change in NCWC 18,786,000
EBIT 373,085,000
Tax Provision 100,458,000
Depreciation and Amortization 61,277,000
Capital Expenditure -90,124,000
Unlevered Free Cash Flow 262,380,404
Current Assets 859,886,000
Current Cash 310,256,000
Current Liabilities 521,796,000
Current Debt 26,258,000
Non-Cash Working Capital (NCWC) 54,092,000
Change in NCWC -10,007,000
EBIT 355,110,000
Tax Provision 85,467,000
Depreciation and Amortization 64,986,000
Capital Expenditure -58,276,000
Unlevered Free Cash Flow 265,879,927
Current Assets 779,009,000
Current Cash 273,555,000
Current Liabilities 463,839,000
Current Debt 22,484,000
Non-Cash Working Capital (NCWC) 64,099,000
Change in NCWC -99,927,000
EBIT 334,396,000
Tax Provision 99,466,000
Depreciation and Amortization 64,097,000
Capital Expenditure -50,723,000
Unlevered Free Cash Flow 147,192,293
Current Assets 710,679,000
Current Cash 126,275,000
Current Liabilities 443,734,000
Current Debt 23,356,000
Non-Cash Working Capital (NCWC) 164,026,000
Change in NCWC 27,825,000
EBIT 299,114,000
Tax Provision 89,440,000
Depreciation and Amortization 63,143,000
Capital Expenditure -56,374,000
Unlevered Free Cash Flow 241,783,922
Current Assets 824,036,000
Current Cash 314,873,000
Current Liabilities 400,420,000
Current Debt 27,458,000
Non-Cash Working Capital (NCWC) 136,201,000
Change in NCWC 54,772,000
EBIT 270,419,000
Tax Provision 82,575,000
Depreciation and Amortization 53,138,000
Capital Expenditure -71,138,000
Unlevered Free Cash Flow 220,116,387
Current Assets 653,267,000
Current Cash 182,993,000
Current Liabilities 388,845,000
Current Debt 0
Non-Cash Working Capital (NCWC) 81,429,000
Change in NCWC -28,585,000
EBIT 237,759,000
Tax Provision 71,868,000
Depreciation and Amortization 54,134,000
Capital Expenditure -49,427,000
Unlevered Free Cash Flow 138,511,419
Current Assets 612,134,000
Current Cash 125,856,000
Current Liabilities 378,122,000
Current Debt 1,858,000
Non-Cash Working Capital (NCWC) 110,014,000
Change in NCWC 15,079,000
EBIT 211,609,000
Tax Provision 66,721,000
Depreciation and Amortization 53,634,000
Capital Expenditure -43,242,000
Unlevered Free Cash Flow 165,141,651

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