USNA Intrinsic Value

USNA

Usana Health Sciences Inc – Medicinal and Botanical Manufacturing

usana health sciences’ mission is to develop and provide the highest quality, science-based health products, distributed internationally through network marketing, creating a rewarding financial opportunity for our independent associates, shareholders, and employees. we’ve got history. not baggage. we’ve been around since 1992, so we’re experienced (we’ve heard that’s a plus). and we look great for our age. plus, we have substance to go along with our great looks. we’ve got top-notch manufacturing facilities, our own scientists and research and development team, and the highest standards for our nutritional products. we have an award-winning compensation plan and award-winning products. we don’t like to brag, but we come pretty highly recommended. that’s because we got off on the right foot. we were founded by a scientist—not a corporate suit. usana’s founder, myron wentz, is an internationally recognized microbiologist, immunologist, and pioneer in infectious disease diagnosis. but su

Analysis Results

Intrinsic Value	$97.38
Latest Price	$59.78
Relative Value	39% undervalued

Share results:

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Cash Flow (Millions)

Analysis Parameters

New Ticker

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 4.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.5%, 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	100	93.5
2024	105	90.8
2025	110	88.3
2026	115	85.8
2027	120	83.4

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2220 million. This corresponds to a present value of 1440 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 442 million. Adding in the terminal value gives a total present value of 1880 million.

There are presently 19.3 million outstanding shares, so the intrinsic value per share is 97.38.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	384,382,000
Current Cash	288,420,000
Current Liabilities	143,833,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-47,871,000
Change in NCWC	-12,366,000
EBIT	107,614,000
Tax Provision	39,271,000
Depreciation and Amortization	21,410,000
Capital Expenditure	-10,400,000
Unlevered Free Cash Flow	67,351,072

Current Assets	365,117,000
Current Cash	239,832,000
Current Liabilities	160,790,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-35,505,000
Change in NCWC	19,199,000
EBIT	170,192,000
Tax Provision	54,137,000
Depreciation and Amortization	22,193,000
Capital Expenditure	-12,763,000
Unlevered Free Cash Flow	144,826,764

Current Assets	425,286,000
Current Cash	311,917,000
Current Liabilities	168,073,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-54,704,000
Change in NCWC	-13,055,000
EBIT	176,491,000
Tax Provision	53,284,000
Depreciation and Amortization	22,509,000
Capital Expenditure	-15,094,000
Unlevered Free Cash Flow	118,003,277

Current Assets	329,279,000
Current Cash	234,830,000
Current Liabilities	136,098,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-41,649,000
Change in NCWC	-70,972,000
EBIT	146,190,000
Tax Provision	49,970,000
Depreciation and Amortization	23,007,000
Capital Expenditure	-16,569,000
Unlevered Free Cash Flow	33,115,744

Current Assets	392,335,000
Current Cash	214,326,000
Current Liabilities	148,686,000
Current Debt	0
Non-Cash Working Capital (NCWC)	29,323,000
Change in NCWC	77,478,000
EBIT	188,353,000
Tax Provision	65,286,000
Depreciation and Amortization	16,843,000
Capital Expenditure	-11,433,000
Unlevered Free Cash Flow	207,031,225

Current Assets	340,159,000
Current Cash	247,131,000
Current Liabilities	141,183,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-48,155,000
Change in NCWC	-11,751,000
EBIT	132,504,000
Tax Provision	72,105,000
Depreciation and Amortization	16,110,000
Capital Expenditure	-13,220,000
Unlevered Free Cash Flow	52,681,911

Current Assets	277,861,000
Current Cash	175,774,000
Current Liabilities	138,491,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-36,404,000
Change in NCWC	-6,046,000
EBIT	138,622,000
Tax Provision	38,511,000
Depreciation and Amortization	13,482,000
Capital Expenditure	-32,698,000
Unlevered Free Cash Flow	74,829,543

Current Assets	244,264,000
Current Cash	143,210,000
Current Liabilities	131,412,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-30,358,000
Change in NCWC	-1,454,000
EBIT	141,662,000
Tax Provision	47,917,000
Depreciation and Amortization	9,978,000
Capital Expenditure	-23,729,000
Unlevered Free Cash Flow	78,851,518

Current Assets	190,927,000
Current Cash	111,126,000
Current Liabilities	108,705,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-28,904,000
Change in NCWC	-16,093,000
EBIT	116,102,000
Tax Provision	39,017,000
Depreciation and Amortization	8,810,000
Capital Expenditure	-20,421,000
Unlevered Free Cash Flow	49,229,524

Current Assets	229,045,000
Current Cash	145,985,000
Current Liabilities	95,871,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-12,811,000
Change in NCWC	-3,673,000
EBIT	116,712,000
Tax Provision	37,557,000
Depreciation and Amortization	9,044,000
Capital Expenditure	-8,051,000
Unlevered Free Cash Flow	76,432,797

Current Assets	132,545,000
Current Cash	70,839,000
Current Liabilities	70,844,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-9,138,000
Change in NCWC	-5,148,000
EBIT	98,179,000
Tax Provision	31,993,000
Depreciation and Amortization	8,826,000
Capital Expenditure	-8,432,000
Unlevered Free Cash Flow	61,512,286

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