DCF Tool

ULBI

Ultralife Corp – Primary Battery Manufacturing
Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.
Analysis Results
Intrinsic Value $10.67
Latest Price $4.81
Relative Value 55% 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 4.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.3%, 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 (million) Present value (million)
2022 6.22 5.88
2023 6.49 5.8
2024 6.76 5.72
2025 7.05 5.64
2026 7.35 5.56
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 201 million. This corresponds to a present value of 144 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 28.6 million. Adding in the terminal value gives a total present value of 172 million.

There are presently 16.1 million outstanding shares, so the intrinsic value per share is 10.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 66,524,000
Current Cash 8,413,000
Current Liabilities 18,924,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 41,187,000
Change in NCWC 4,689,000
EBIT 35,000
Tax Provision 79,000
Depreciation and Amortization 3,539,000
Capital Expenditure -2,814,000
Unlevered Free Cash Flow 5,449,000
Current Assets 64,496,000
Current Cash 10,653,000
Current Liabilities 18,706,000
Current Debt 1,361,000
Non-Cash Working Capital (NCWC) 36,498,000
Change in NCWC -10,652,000
EBIT 5,701,000
Tax Provision 1,692,000
Depreciation and Amortization 2,935,000
Capital Expenditure -3,101,000
Unlevered Free Cash Flow -6,490,500
Current Assets 70,373,000
Current Cash 7,405,000
Current Liabilities 17,190,000
Current Debt 1,372,000
Non-Cash Working Capital (NCWC) 47,150,000
Change in NCWC 20,459,000
EBIT 7,368,000
Tax Provision 1,457,000
Depreciation and Amortization 2,745,000
Capital Expenditure -6,281,000
Unlevered Free Cash Flow 22,705,536
Current Assets 67,221,000
Current Cash 25,583,000
Current Liabilities 14,947,000
Current Debt 0
Non-Cash Working Capital (NCWC) 26,691,000
Change in NCWC -2,745,000
EBIT 6,555,000
Tax Provision -18,386,000
Depreciation and Amortization 2,369,000
Capital Expenditure -4,185,000
Unlevered Free Cash Flow 1,994,000
Current Assets 61,916,000
Current Cash 18,241,000
Current Liabilities 14,239,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,436,000
Change in NCWC 1,879,000
EBIT 6,476,000
Tax Provision -1,369,000
Depreciation and Amortization 2,427,000
Capital Expenditure -1,392,000
Unlevered Free Cash Flow 9,390,000
Current Assets 49,514,000
Current Cash 10,629,000
Current Liabilities 11,328,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,557,000
Change in NCWC 851,000
EBIT 3,763,000
Tax Provision 98,000
Depreciation and Amortization 2,726,000
Capital Expenditure -1,219,000
Unlevered Free Cash Flow 6,017,990
Current Assets 51,946,000
Current Cash 14,393,000
Current Liabilities 10,847,000
Current Debt 0
Non-Cash Working Capital (NCWC) 26,706,000
Change in NCWC -1,222,000
EBIT 3,480,000
Tax Provision 310,000
Depreciation and Amortization 2,707,000
Capital Expenditure -2,910,000
Unlevered Free Cash Flow 1,712,523
Current Assets 56,850,000
Current Cash 17,711,000
Current Liabilities 11,211,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,928,000
Change in NCWC -2,640,000
EBIT -1,443,000
Tax Provision 268,000
Depreciation and Amortization 3,133,000
Capital Expenditure -1,653,000
Unlevered Free Cash Flow -2,603,000
Current Assets 58,658,000
Current Cash 16,066,000
Current Liabilities 12,024,000
Current Debt 0
Non-Cash Working Capital (NCWC) 30,568,000
Change in NCWC -3,706,000
EBIT -624,000
Tax Provision 239,000
Depreciation and Amortization 3,431,000
Capital Expenditure -766,000
Unlevered Free Cash Flow -1,665,000
Current Assets 63,822,000
Current Cash 9,656,000
Current Liabilities 19,892,000
Current Debt 0
Non-Cash Working Capital (NCWC) 34,274,000
Change in NCWC -1,481,000
EBIT -114,000
Tax Provision 554,000
Depreciation and Amortization 3,964,000
Capital Expenditure -2,685,000
Unlevered Free Cash Flow -316,000

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