DCF Tool

WOR

Worthington Industries, Inc. – All Other Miscellaneous Fabricated Metal Product Manufacturing
Worthington Industries is a leading industrial manufacturing company delivering innovative solutions to customers that span many industries including transportation, construction, industrial, agriculture, retail and energy. Worthington is North America's premier value-added steel processor and producer of laser welded products; and a leading global supplier of pressure cylinders and accessories for applications such as fuel storage, water systems, outdoor living, tools and celebrations. The Company's brands, primarily sold in retail stores, include Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®, Well-X-Trol®, General®, Garden-Weasel®, Pactool International® and Hawkeye™. Worthington's WAVE joint venture with Armstrong is the North American leader in innovative ceiling solutions.
Analysis Results
Intrinsic Value $338.41
Latest Price $55.40
Relative Value 84% 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 18.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.0%, 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 0.665 0.615
2024 0.785 0.67
2025 0.926 0.73
2026 1.09 0.795
2027 1.29 0.867
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 21.0 billion. This corresponds to a present value of 13.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.68 billion. Adding in the terminal value gives a total present value of 16.8 billion.

There are presently 49.5 million outstanding shares, so the intrinsic value per share is 338.41.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,785,653,000
Current Cash 34,485,000
Current Liabilities 932,261,000
Current Debt 48,262,000
Non-Cash Working Capital (NCWC) 867,169,000
Change in NCWC 326,931,000
EBIT 528,889,000
Tax Provision 115,022,000
Depreciation and Amortization 98,827,000
Capital Expenditure -94,600,000
Unlevered Free Cash Flow 741,758,984
Current Assets 1,967,992,000
Current Cash 640,311,000
Current Liabilities 787,901,000
Current Debt 458,000
Non-Cash Working Capital (NCWC) 540,238,000
Change in NCWC 92,346,000
EBIT 411,258,000
Tax Provision 176,267,000
Depreciation and Amortization 87,654,000
Capital Expenditure -82,178,000
Unlevered Free Cash Flow 430,089,184
Current Assets 983,179,000
Current Cash 147,198,000
Current Liabilities 388,238,000
Current Debt 149,000
Non-Cash Working Capital (NCWC) 447,892,000
Change in NCWC -78,581,000
EBIT 230,075,000
Tax Provision 26,342,000
Depreciation and Amortization 92,678,000
Capital Expenditure -95,503,000
Unlevered Free Cash Flow 93,963,210
Current Assets 1,165,913,000
Current Cash 92,363,000
Current Liabilities 698,020,000
Current Debt 150,943,000
Non-Cash Working Capital (NCWC) 526,473,000
Change in NCWC 52,739,000
EBIT 238,602,000
Tax Provision 43,183,000
Depreciation and Amortization 95,602,000
Capital Expenditure -84,499,000
Unlevered Free Cash Flow 252,537,239
Current Assets 1,241,122,000
Current Cash 121,967,000
Current Liabilities 646,895,000
Current Debt 1,474,000
Non-Cash Working Capital (NCWC) 473,734,000
Change in NCWC 74,815,000
EBIT 298,536,000
Tax Provision 8,220,000
Depreciation and Amortization 103,359,000
Capital Expenditure -76,088,000
Unlevered Free Cash Flow 388,884,467
Current Assets 1,190,969,000
Current Cash 278,081,000
Current Liabilities 520,783,000
Current Debt 6,814,000
Non-Cash Working Capital (NCWC) 398,919,000
Change in NCWC -5,788,000
EBIT 329,570,000
Tax Provision 79,190,000
Depreciation and Amortization 86,793,000
Capital Expenditure -68,386,000
Unlevered Free Cash Flow 254,352,323
Current Assets 915,460,000
Current Cash 84,188,000
Current Liabilities 430,078,000
Current Debt 3,513,000
Non-Cash Working Capital (NCWC) 404,707,000
Change in NCWC -123,418,000
EBIT 270,157,000
Tax Provision 58,987,000
Depreciation and Amortization 84,699,000
Capital Expenditure -97,036,000
Unlevered Free Cash Flow 60,834,837
Current Assets 992,193,000
Current Cash 31,067,000
Current Liabilities 524,392,000
Current Debt 91,391,000
Non-Cash Working Capital (NCWC) 528,125,000
Change in NCWC -2,590,000
EBIT 254,676,000
Tax Provision 25,772,000
Depreciation and Amortization 85,089,000
Capital Expenditure -96,255,000
Unlevered Free Cash Flow 182,850,230
Current Assets 1,198,922,000
Current Cash 190,079,000
Current Liabilities 589,663,000
Current Debt 111,535,000
Non-Cash Working Capital (NCWC) 530,715,000
Change in NCWC 49,311,000
EBIT 282,543,000
Tax Provision 57,349,000
Depreciation and Amortization 79,730,000
Capital Expenditure -71,338,000
Unlevered Free Cash Flow 265,747,222
Current Assets 866,883,000
Current Cash 51,385,000
Current Liabilities 448,914,000
Current Debt 114,820,000
Non-Cash Working Capital (NCWC) 481,404,000
Change in NCWC -9,796,000
EBIT 233,547,000
Tax Provision 64,465,000
Depreciation and Amortization 66,469,000
Capital Expenditure -44,588,000
Unlevered Free Cash Flow 170,840,110
Current Assets 914,239,000
Current Cash 41,028,000
Current Liabilities 658,263,000
Current Debt 276,252,000
Non-Cash Working Capital (NCWC) 491,200,000
Change in NCWC 47,778,000
EBIT 200,774,000
Tax Provision 51,904,000
Depreciation and Amortization 55,873,000
Capital Expenditure -31,713,000
Unlevered Free Cash Flow 213,921,804

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