DCF Tool

WAT

Waters Corp. – Analytical Laboratory Instrument Manufacturing
waters corporation (nyse: wat), the world's leading specialty measurement company, has pioneered chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for nearly 60 years. with approximately 7,000 employees worldwide, waters operates directly in 31 countries, including 15 manufacturing facilities, and with products available in more than 100 countries. waters corporation's businesses include waters, ta instruments, vicam, era, and nonlinear dynamics. waters creates business advantages for laboratory-dependent organizations by delivering ultra performance liquid chromatography (uplc), high-performance liquid chromatography (hplc), chromatography columns and chemistry products, mass spectrometry systems, laboratory informatics solutions, and comprehensive service programs to enable significant advancement in healthcare delivery, environmental management, food safety, and water quality. ta instruments'‚Äč thermal analysis, rheometry
Analysis Results
Intrinsic Value $507.27
Latest Price $288.85
Relative Value 43% 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 6.4%.

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 6.4%, 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 0.852 0.818
2024 0.906 0.836
2025 0.963 0.854
2026 1.02 0.873
2027 1.09 0.892
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 32.7 billion. This corresponds to a present value of 25.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.27 billion. Adding in the terminal value gives a total present value of 30.0 billion.

There are presently 59.1 million outstanding shares, so the intrinsic value per share is 507.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,763,903,000
Current Cash 481,391,000
Current Liabilities 785,737,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 546,775,000
Change in NCWC 167,626,000
EBIT 883,192,000
Tax Provision 130,091,000
Depreciation and Amortization 130,423,000
Capital Expenditure -183,456,000
Unlevered Free Cash Flow 860,653,199
Current Assets 1,628,942,000
Current Cash 569,285,000
Current Liabilities 680,508,000
Current Debt 0
Non-Cash Working Capital (NCWC) 379,149,000
Change in NCWC 76,245,000
EBIT 826,872,000
Tax Provision 113,350,000
Depreciation and Amortization 131,680,000
Capital Expenditure -168,266,000
Unlevered Free Cash Flow 750,273,551
Current Assets 1,401,033,000
Current Cash 443,146,000
Current Liabilities 804,983,000
Current Debt 150,000,000
Non-Cash Working Capital (NCWC) 302,904,000
Change in NCWC -181,475,000
EBIT 653,614,000
Tax Provision 89,343,000
Depreciation and Amortization 125,361,000
Capital Expenditure -172,384,000
Unlevered Free Cash Flow 329,528,346
Current Assets 1,312,491,000
Current Cash 337,144,000
Current Liabilities 591,334,000
Current Debt 100,366,000
Non-Cash Working Capital (NCWC) 484,379,000
Change in NCWC 5,193,000
EBIT 708,457,000
Tax Provision 86,041,000
Depreciation and Amortization 105,296,000
Capital Expenditure -163,823,000
Unlevered Free Cash Flow 565,248,562
Current Assets 2,663,163,000
Current Cash 1,735,224,000
Current Liabilities 448,931,000
Current Debt 178,000
Non-Cash Working Capital (NCWC) 479,186,000
Change in NCWC 108,637,000
EBIT 739,348,000
Tax Provision 88,352,000
Depreciation and Amortization 108,408,000
Capital Expenditure -96,079,000
Unlevered Free Cash Flow 764,553,159
Current Assets 4,270,134,000
Current Cash 3,393,701,000
Current Liabilities 606,157,000
Current Debt 100,273,000
Non-Cash Working Capital (NCWC) 370,549,000
Change in NCWC -56,840,000
EBIT 677,972,000
Tax Provision 620,786,000
Depreciation and Amortization 106,002,000
Capital Expenditure -90,473,000
Unlevered Free Cash Flow -19,831,739
Current Assets 3,635,445,000
Current Cash 2,813,032,000
Current Liabilities 520,321,000
Current Debt 125,297,000
Non-Cash Working Capital (NCWC) 427,389,000
Change in NCWC 1,886,000
EBIT 627,863,000
Tax Provision 78,611,000
Depreciation and Amortization 96,449,000
Capital Expenditure -94,967,000
Unlevered Free Cash Flow 548,985,062
Current Assets 3,213,533,000
Current Cash 2,399,263,000
Current Liabilities 564,076,000
Current Debt 175,309,000
Non-Cash Working Capital (NCWC) 425,503,000
Change in NCWC -16,493,000
EBIT 575,245,000
Tax Provision 72,866,000
Depreciation and Amortization 89,987,000
Capital Expenditure -100,012,000
Unlevered Free Cash Flow 471,380,012
Current Assets 2,853,736,000
Current Cash 2,055,388,000
Current Liabilities 581,595,000
Current Debt 225,243,000
Non-Cash Working Capital (NCWC) 441,996,000
Change in NCWC 43,597,000
EBIT 533,364,000
Tax Provision 59,120,000
Depreciation and Amortization 94,231,000
Capital Expenditure -91,122,000
Unlevered Free Cash Flow 515,815,038
Current Assets 2,556,255,000
Current Cash 1,803,670,000
Current Liabilities 487,532,000
Current Debt 133,346,000
Non-Cash Working Capital (NCWC) 398,399,000
Change in NCWC 51,159,000
EBIT 517,343,000
Tax Provision 40,102,000
Depreciation and Amortization 79,695,000
Capital Expenditure -118,450,000
Unlevered Free Cash Flow 487,416,297
Current Assets 2,257,726,000
Current Cash 1,539,025,000
Current Liabilities 504,242,000
Current Debt 132,781,000
Non-Cash Working Capital (NCWC) 347,240,000
Change in NCWC -2,482,000
EBIT 518,924,000
Tax Provision 26,182,000
Depreciation and Amortization 68,831,000
Capital Expenditure -104,749,000
Unlevered Free Cash Flow 452,661,465

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