DCF Tool

WDFC

WD-40 Co. – Polish and Other Sanitation Good Manufacturing
WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developingand selling products that solve problems in workshops, factories and homes around the world. The Company markets a wide range of maintenance products and homecare and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.
Analysis Results
Intrinsic Value $235.06
Latest Price $176.27
Relative Value 25% 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 7.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.8%, 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 80.5 78.4
2023 86.8 82.3
2024 93.6 86.4
2025 101 90.6
2026 109 95.1
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 3270 million. This corresponds to a present value of 2780 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 433 million. Adding in the terminal value gives a total present value of 3210 million.

There are presently 13.7 million outstanding shares, so the intrinsic value per share is 235.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 482,438,000
Current Cash 171,922,000
Current Liabilities 171,872,000
Current Debt 1,600,000
Non-Cash Working Capital (NCWC) 140,244,000
Change in NCWC 70,868,000
EBIT 177,682,000
Tax Provision 32,540,000
Depreciation and Amortization 14,038,000
Capital Expenditure -30,118,000
Unlevered Free Cash Flow 199,048,964
Current Assets 185,154,000
Current Cash 56,462,000
Current Liabilities 60,116,000
Current Debt 800,000
Non-Cash Working Capital (NCWC) 69,376,000
Change in NCWC 1,999,000
EBIT 77,220,000
Tax Provision 14,805,000
Depreciation and Amortization 7,701,000
Capital Expenditure -19,307,000
Unlevered Free Cash Flow 52,473,728
Current Assets 147,995,000
Current Cash 27,233,000
Current Liabilities 74,590,000
Current Debt 21,205,000
Non-Cash Working Capital (NCWC) 67,377,000
Change in NCWC 10,782,000
EBIT 82,382,000
Tax Provision 24,862,000
Depreciation and Amortization 7,593,000
Capital Expenditure -13,282,000
Unlevered Free Cash Flow 62,116,806
Current Assets 167,983,000
Current Cash 49,085,000
Current Liabilities 85,903,000
Current Debt 23,600,000
Non-Cash Working Capital (NCWC) 56,595,000
Change in NCWC 4,412,000
EBIT 78,604,000
Tax Provision 9,963,000
Depreciation and Amortization 7,800,000
Capital Expenditure -12,356,000
Unlevered Free Cash Flow 68,042,967
Current Assets 224,854,000
Current Cash 117,248,000
Current Liabilities 75,423,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 52,183,000
Change in NCWC 9,929,000
EBIT 75,909,000
Tax Provision 21,692,000
Depreciation and Amortization 6,769,000
Capital Expenditure -20,150,000
Unlevered Free Cash Flow 50,390,879
Current Assets 209,472,000
Current Cash 108,524,000
Current Liabilities 58,694,000
Current Debt 0
Non-Cash Working Capital (NCWC) 42,254,000
Change in NCWC -12,527,000
EBIT 71,348,000
Tax Provision 20,161,000
Depreciation and Amortization 6,465,000
Capital Expenditure -4,354,000
Unlevered Free Cash Flow 41,170,126
Current Assets 205,252,000
Current Cash 102,499,000
Current Liabilities 47,972,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,781,000
Change in NCWC -4,109,000
EBIT 65,390,000
Tax Provision 18,303,000
Depreciation and Amortization 6,464,000
Capital Expenditure -5,784,000
Unlevered Free Cash Flow 42,996,760
Current Assets 215,654,000
Current Cash 102,853,000
Current Liabilities 151,911,000
Current Debt 98,000,000
Non-Cash Working Capital (NCWC) 58,890,000
Change in NCWC 12,342,000
EBIT 63,737,000
Tax Provision 19,213,000
Depreciation and Amortization 5,860,000
Capital Expenditure -4,085,000
Unlevered Free Cash Flow 58,403,580
Current Assets 192,143,000
Current Cash 90,950,000
Current Liabilities 117,645,000
Current Debt 63,000,000
Non-Cash Working Capital (NCWC) 46,548,000
Change in NCWC -4,372,000
EBIT 57,714,000
Tax Provision 17,054,000
Depreciation and Amortization 5,359,000
Capital Expenditure -2,854,000
Unlevered Free Cash Flow 38,538,990
Current Assets 166,117,000
Current Cash 70,752,000
Current Liabilities 89,445,000
Current Debt 45,000,000
Non-Cash Working Capital (NCWC) 50,920,000
Change in NCWC 8,205,000
EBIT 51,729,000
Tax Provision 15,428,000
Depreciation and Amortization 4,869,000
Capital Expenditure -3,765,000
Unlevered Free Cash Flow 45,362,730

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