DCF Tool

VGR

Vector Group Ltd – Tobacco Manufacturing
Analysis Results
Intrinsic Value $40.34
Latest Price $10.88
Relative Value 73% 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 6.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.1%, 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 245 230
2023 260 230
2024 275 229
2025 292 229
2026 310 228
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7360 million. This corresponds to a present value of 5100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1150 million. Adding in the terminal value gives a total present value of 6240 million.

There are presently 155.0 million outstanding shares, so the intrinsic value per share is 40.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 471,803,000
Current Cash 340,098,000
Current Liabilities 165,290,000
Current Debt 79,000
Non-Cash Working Capital (NCWC) -33,506,000
Change in NCWC 61,776,000
EBIT 332,665,000
Tax Provision 62,807,000
Depreciation and Amortization 16,334,000
Capital Expenditure -13,506,000
Unlevered Free Cash Flow 297,756,754
Current Assets 663,903,000
Current Cash 488,427,000
Current Liabilities 283,315,000
Current Debt 12,557,000
Non-Cash Working Capital (NCWC) -95,282,000
Change in NCWC -24,050,000
EBIT 317,570,000
Tax Provision 41,777,000
Depreciation and Amortization 17,629,000
Capital Expenditure -19,063,000
Unlevered Free Cash Flow 193,603,114
Current Assets 681,614,000
Current Cash 500,982,000
Current Liabilities 461,133,000
Current Debt 209,269,000
Non-Cash Working Capital (NCWC) -71,232,000
Change in NCWC 1,483,000
EBIT 229,837,000
Tax Provision 32,813,000
Depreciation and Amortization 17,851,000
Capital Expenditure -12,575,000
Unlevered Free Cash Flow 180,242,759
Current Assets 872,221,000
Current Cash 716,150,000
Current Liabilities 484,920,000
Current Debt 256,134,000
Non-Cash Working Capital (NCWC) -72,715,000
Change in NCWC -63,763,000
EBIT 239,869,000
Tax Provision 21,552,000
Depreciation and Amortization 18,807,000
Capital Expenditure -17,682,000
Unlevered Free Cash Flow 112,252,095
Current Assets 613,709,000
Current Cash 451,842,000
Current Liabilities 204,639,000
Current Debt 33,820,000
Non-Cash Working Capital (NCWC) -8,952,000
Change in NCWC -7,342,000
EBIT 260,909,000
Tax Provision -1,582,000
Depreciation and Amortization 18,614,000
Capital Expenditure -19,869,000
Unlevered Free Cash Flow 252,312,000
Current Assets 705,463,000
Current Cash 550,433,000
Current Liabilities 196,148,000
Current Debt 39,508,000
Non-Cash Working Capital (NCWC) -1,610,000
Change in NCWC 44,368,000
EBIT 255,484,000
Tax Provision 49,163,000
Depreciation and Amortization 22,359,000
Capital Expenditure -26,691,000
Unlevered Free Cash Flow 196,172,857
Current Assets 583,739,000
Current Cash 422,344,000
Current Liabilities 216,292,000
Current Debt 8,919,000
Non-Cash Working Capital (NCWC) -45,978,000
Change in NCWC -13,961,000
EBIT 226,339,000
Tax Provision 41,233,000
Depreciation and Amortization 25,654,000
Capital Expenditure -10,977,000
Unlevered Free Cash Flow 140,405,021
Current Assets 857,846,000
Current Cash 672,408,000
Current Liabilities 270,095,000
Current Debt 52,640,000
Non-Cash Working Capital (NCWC) -32,017,000
Change in NCWC 40,100,000
EBIT 221,208,000
Tax Provision 33,251,000
Depreciation and Amortization 24,499,000
Capital Expenditure -23,404,000
Unlevered Free Cash Flow 173,232,740
Current Assets 588,311,000
Current Cash 407,000,000
Current Liabilities 405,005,000
Current Debt 151,577,000
Non-Cash Working Capital (NCWC) -72,117,000
Change in NCWC -76,953,000
EBIT 225,133,000
Tax Provision 24,795,000
Depreciation and Amortization 12,631,000
Capital Expenditure -13,275,000
Unlevered Free Cash Flow 59,609,767
Current Assets 639,056,000
Current Cash 475,839,000
Current Liabilities 195,159,000
Current Debt 36,778,000
Non-Cash Working Capital (NCWC) 4,836,000
Change in NCWC 76,858,000
EBIT 183,436,000
Tax Provision 23,095,000
Depreciation and Amortization 10,608,000
Capital Expenditure -11,265,000
Unlevered Free Cash Flow 180,770,823

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