DCF Tool


Cactus Inc – Oil and Gas Field Machinery and Equipment Manufacturing
cactus wellhead, llc designs, manufactures and sells surface wellheads and christmas trees. in addition, the company maintains an inventory of frac trees and ancillary equipment for short-term rental, offers repair and refurbishment services, and provides service crews to assist in the implementation of pressure control systems at the wellhead. mission statement: guided by a relentless focus on customer service and the conviction that their resulting loyalty will maximize owner value, we will strive for operational excellence in all dealings with our clients, associates and suppliers. we will consistently outperform our peers by refusing to compromise on safety, honesty and professionalism.
Analysis Results
Intrinsic Value $67.31
Latest Price $51.44
Relative Value 24% undervalued
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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 17.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.5%, 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 230 209
2024 270 223
2025 318 238
2026 373 255
2027 438 272
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5580 million. This corresponds to a present value of 3150 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1200 million. Adding in the terminal value gives a total present value of 4350 million.

There are presently 64.6 million outstanding shares, so the intrinsic value per share is 67.31.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 654,642,000
Current Cash 344,527,000
Current Liabilities 116,649,000
Current Debt 5,933,000
Non-Cash Working Capital (NCWC) 199,399,000
Change in NCWC 70,290,000
EBIT 174,748,000
Tax Provision 31,430,000
Depreciation and Amortization 34,124,000
Capital Expenditure -28,291,000
Unlevered Free Cash Flow 219,762,150
Current Assets 518,485,000
Current Cash 301,669,000
Current Liabilities 92,574,000
Current Debt 4,867,000
Non-Cash Working Capital (NCWC) 129,109,000
Change in NCWC 37,718,000
EBIT 75,427,000
Tax Provision 7,675,000
Depreciation and Amortization 36,308,000
Capital Expenditure -13,939,000
Unlevered Free Cash Flow 127,810,197
Current Assets 425,142,000
Current Cash 288,659,000
Current Liabilities 48,915,000
Current Debt 3,823,000
Non-Cash Working Capital (NCWC) 91,391,000
Change in NCWC -36,498,000
EBIT 71,903,000
Tax Provision 10,970,000
Depreciation and Amortization 40,520,000
Capital Expenditure -24,493,000
Unlevered Free Cash Flow 40,193,474
Current Assets 414,883,000
Current Cash 202,603,000
Current Liabilities 91,126,000
Current Debt 6,735,000
Non-Cash Working Capital (NCWC) 127,889,000
Change in NCWC -8,504,000
EBIT 183,150,000
Tax Provision 32,020,000
Depreciation and Amortization 38,854,000
Capital Expenditure -59,703,000
Unlevered Free Cash Flow 122,656,549
Current Assets 274,505,000
Current Cash 70,841,000
Current Liabilities 74,624,000
Current Debt 7,353,000
Non-Cash Working Capital (NCWC) 136,393,000
Change in NCWC 25,677,000
EBIT 177,701,000
Tax Provision 19,520,000
Depreciation and Amortization 30,153,000
Capital Expenditure -70,053,000
Unlevered Free Cash Flow 143,049,831

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