DCF Tool

WIRE

Encore Wire Corp. – Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers
encore wire (www.encorewire.com) is a leading manufacturer of residential, commercial and industrial copper and aluminum electrical building wire. encore wire’s 425-acre single-campus and over 2.1 million sq. ft. under roof allows for deep inventory levels and unmatched delivery times. our innovative wire pulling solutions, award-winning colored wire and metal-clad and armored clad smartcolorid identification system promote cost and labor savings and safety.
Analysis Results
Intrinsic Value $15,859.32
Latest Price $188.39
Relative Value 99% 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 70.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 70.4%, 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 1.17 1.13
2024 2.0 1.84
2025 3.41 3.01
2026 5.81 4.92
2027 9.91 8.04
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 297 billion. This corresponds to a present value of 231 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.9 billion. Adding in the terminal value gives a total present value of 250 billion.

There are presently 15.8 million outstanding shares, so the intrinsic value per share is 15859.32.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,401,641,000
Current Cash 730,557,000
Current Liabilities 144,161,000
Current Debt 0
Non-Cash Working Capital (NCWC) 526,923,000
Change in NCWC 84,963,000
EBIT 915,003,000
Tax Provision 207,009,000
Depreciation and Amortization 26,232,000
Capital Expenditure -148,350,000
Unlevered Free Cash Flow 673,043,052
Current Assets 1,035,050,000
Current Cash 438,990,000
Current Liabilities 154,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 441,960,000
Change in NCWC 163,542,000
EBIT 699,203,000
Tax Provision 157,975,000
Depreciation and Amortization 23,288,000
Capital Expenditure -118,252,000
Unlevered Free Cash Flow 609,849,819
Current Assets 555,133,000
Current Cash 183,123,000
Current Liabilities 93,592,000
Current Debt 0
Non-Cash Working Capital (NCWC) 278,418,000
Change in NCWC 35,441,000
EBIT 97,527,000
Tax Provision 22,729,000
Depreciation and Amortization 19,459,000
Capital Expenditure -86,082,000
Unlevered Free Cash Flow 43,907,946
Current Assets 549,238,000
Current Cash 230,965,000
Current Liabilities 75,296,000
Current Debt 0
Non-Cash Working Capital (NCWC) 242,977,000
Change in NCWC -24,283,000
EBIT 71,529,000
Tax Provision 17,599,000
Depreciation and Amortization 17,707,000
Capital Expenditure -52,484,000
Unlevered Free Cash Flow -4,154,162
Current Assets 519,237,000
Current Cash 178,405,000
Current Liabilities 73,572,000
Current Debt 0
Non-Cash Working Capital (NCWC) 267,260,000
Change in NCWC 15,269,000
EBIT 99,510,000
Tax Provision 23,534,000
Depreciation and Amortization 16,513,000
Capital Expenditure -26,181,000
Unlevered Free Cash Flow 82,080,156
Current Assets 446,984,000
Current Cash 123,362,000
Current Liabilities 71,631,000
Current Debt 0
Non-Cash Working Capital (NCWC) 251,991,000
Change in NCWC 22,244,000
EBIT 79,449,000
Tax Provision 12,859,000
Depreciation and Amortization 15,684,000
Capital Expenditure -21,754,000
Unlevered Free Cash Flow 82,832,741
Current Assets 376,382,000
Current Cash 95,753,000
Current Liabilities 50,882,000
Current Debt 0
Non-Cash Working Capital (NCWC) 229,747,000
Change in NCWC 1,459,000
EBIT 50,766,000
Tax Provision 16,975,000
Depreciation and Amortization 16,811,000
Capital Expenditure -45,374,000
Unlevered Free Cash Flow 6,703,034
Current Assets 370,155,000
Current Cash 79,152,000
Current Liabilities 62,715,000
Current Debt 0
Non-Cash Working Capital (NCWC) 228,288,000
Change in NCWC -3,025,000
EBIT 72,229,000
Tax Provision 24,779,000
Depreciation and Amortization 16,063,000
Capital Expenditure -43,711,000
Unlevered Free Cash Flow 16,830,060
Current Assets 345,315,000
Current Cash 54,664,000
Current Liabilities 59,338,000
Current Debt 0
Non-Cash Working Capital (NCWC) 231,313,000
Change in NCWC -14,057,000
EBIT 56,101,000
Tax Provision 19,034,000
Depreciation and Amortization 15,453,000
Capital Expenditure -44,274,000
Unlevered Free Cash Flow -5,792,019
Current Assets 330,066,000
Current Cash 36,778,000
Current Liabilities 47,918,000
Current Debt 0
Non-Cash Working Capital (NCWC) 245,370,000
Change in NCWC 17,760,000
EBIT 70,619,000
Tax Provision 23,773,000
Depreciation and Amortization 14,788,000
Capital Expenditure -44,505,000
Unlevered Free Cash Flow 34,910,525
Current Assets 306,850,000
Current Cash 33,883,000
Current Liabilities 45,357,000
Current Debt 0
Non-Cash Working Capital (NCWC) 227,610,000
Change in NCWC 5,424,000
EBIT 29,346,000
Tax Provision 9,565,000
Depreciation and Amortization 14,280,000
Capital Expenditure -40,301,000
Unlevered Free Cash Flow -806,231

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