DCF Tool

TTEK

Tetra Tech, Inc. – Engineering Services
Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With 20,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, sustainable infrastructure, and renewable energy. The Company is Leading with Science® to provide sustainable and resilient solutions for its clients.
Analysis Results
Intrinsic Value $78.00
Latest Price $146.03
Relative Value 87% overvalued
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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 9.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.7%, 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)
2023 266 243
2024 292 243
2025 321 243
2026 352 243
2027 386 243
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5120 million. This corresponds to a present value of 2940 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1210 million. Adding in the terminal value gives a total present value of 4150 million.

There are presently 53.2 million outstanding shares, so the intrinsic value per share is 78.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,158,216,000
Current Cash 185,094,000
Current Liabilities 916,017,000
Current Debt 12,504,000
Non-Cash Working Capital (NCWC) 69,609,000
Change in NCWC 6,208,000
EBIT 340,775,000
Tax Provision 85,602,000
Depreciation and Amortization 27,033,000
Capital Expenditure -10,582,000
Unlevered Free Cash Flow 279,793,331
Current Assets 1,065,948,000
Current Cash 166,568,000
Current Liabilities 848,483,000
Current Debt 12,504,000
Non-Cash Working Capital (NCWC) 63,401,000
Change in NCWC -34,677,000
EBIT 275,428,000
Tax Provision 34,039,000
Depreciation and Amortization 23,805,000
Capital Expenditure -8,573,000
Unlevered Free Cash Flow 220,852,435
Current Assets 999,785,000
Current Cash 157,515,000
Current Liabilities 793,456,000
Current Debt 49,264,000
Non-Cash Working Capital (NCWC) 98,078,000
Change in NCWC -103,600,000
EBIT 241,920,000
Tax Provision 54,101,000
Depreciation and Amortization 24,611,000
Capital Expenditure -12,245,000
Unlevered Free Cash Flow 93,279,725
Current Assets 1,079,792,000
Current Cash 120,732,000
Current Liabilities 769,954,000
Current Debt 12,572,000
Non-Cash Working Capital (NCWC) 201,678,000
Change in NCWC -97,023,000
EBIT 207,953,000
Tax Provision 16,375,000
Depreciation and Amortization 28,844,000
Capital Expenditure -16,198,000
Unlevered Free Cash Flow 104,132,650
Current Assets 1,050,380,000
Current Cash 146,185,000
Current Liabilities 618,093,000
Current Debt 12,599,000
Non-Cash Working Capital (NCWC) 298,701,000
Change in NCWC -31,267,000
EBIT 194,338,000
Tax Provision 37,605,000
Depreciation and Amortization 38,636,000
Capital Expenditure -9,726,000
Unlevered Free Cash Flow 150,115,757
Current Assets 1,042,023,000
Current Cash 189,975,000
Current Liabilities 537,668,000
Current Debt 15,588,000
Non-Cash Working Capital (NCWC) 329,968,000
Change in NCWC 20,575,000
EBIT 176,419,000
Tax Provision 53,844,000
Depreciation and Amortization 45,756,000
Capital Expenditure -9,741,000
Unlevered Free Cash Flow 177,704,800
Current Assets 935,428,000
Current Cash 160,459,000
Current Liabilities 481,086,000
Current Debt 15,510,000
Non-Cash Working Capital (NCWC) 309,393,000
Change in NCWC 59,482,000
EBIT 158,226,000
Tax Provision 40,613,000
Depreciation and Amortization 45,588,000
Capital Expenditure -11,945,000
Unlevered Free Cash Flow 199,722,181
Current Assets 823,775,000
Current Cash 135,326,000
Current Liabilities 450,442,000
Current Debt 11,904,000
Non-Cash Working Capital (NCWC) 249,911,000
Change in NCWC -33,441,000
EBIT 145,334,000
Tax Provision 41,093,000
Depreciation and Amortization 44,201,000
Capital Expenditure -24,296,000
Unlevered Free Cash Flow 57,443,720
Current Assets 898,603,000
Current Cash 122,379,000
Current Liabilities 503,861,000
Current Debt 10,989,000
Non-Cash Working Capital (NCWC) 283,352,000
Change in NCWC 19,837,000
EBIT 95,139,000
Tax Provision 35,668,000
Depreciation and Amortization 54,540,000
Capital Expenditure -19,404,000
Unlevered Free Cash Flow 126,602,596
Current Assets 871,642,000
Current Cash 129,305,000
Current Liabilities 483,133,000
Current Debt 4,311,000
Non-Cash Working Capital (NCWC) 263,515,000
Change in NCWC 10,813,000
EBIT 67,258,000
Tax Provision 14,038,000
Depreciation and Amortization 62,605,000
Capital Expenditure -27,545,000
Unlevered Free Cash Flow 99,093,000
Current Assets 859,313,000
Current Cash 104,848,000
Current Liabilities 503,794,000
Current Debt 2,031,000
Non-Cash Working Capital (NCWC) 252,702,000
Change in NCWC 33,247,000
EBIT 147,121,000
Tax Provision 56,064,000
Depreciation and Amortization 56,902,000
Capital Expenditure -25,106,000
Unlevered Free Cash Flow 160,867,999

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