DCF Tool


Xylem Inc – Pump and Pumping Equipment Manufacturing
xylem (xyl) is a leading global water technology provider, enabling customers to transport, treat, test and efficiently use water in public utility, residential and commercial building services, industrial and agricultural settings. the company does business in more than 150 countries through a number of market-leading product brands, and its people bring broad applications expertise with a strong focus on finding local solutions to the world’s most challenging water and wastewater problems. xylem is headquartered in rye brook, new york, with 2014 revenues of $3.9 billion and approximately 12,500 employees worldwide. xylem was named to the dow jones sustainability index for the last three years for advancing sustainable business practices and solutions worldwide. the name xylem is derived from classical greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all
Analysis Results
Intrinsic Value $93.53
Latest Price $106.20
Relative Value 14% overvalued
Thoughts on this result? Let us know.
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 5.6%.

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 5.6%, 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 658 632
2024 695 641
2025 733 651
2026 774 660
2027 817 669
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 24500 million. This corresponds to a present value of 19300 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3250 million. Adding in the terminal value gives a total present value of 22500 million.

There are presently 241.0 million outstanding shares, so the intrinsic value per share is 93.53.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,012,000,000
Current Cash 944,000,000
Current Liabilities 1,590,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 478,000,000
Change in NCWC 58,000,000
EBIT 651,000,000
Tax Provision 85,000,000
Depreciation and Amortization 236,000,000
Capital Expenditure -208,000,000
Unlevered Free Cash Flow 611,238,636
Current Assets 3,160,000,000
Current Cash 1,349,000,000
Current Liabilities 1,391,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 420,000,000
Change in NCWC 128,000,000
EBIT 592,000,000
Tax Provision 84,000,000
Depreciation and Amortization 245,000,000
Capital Expenditure -208,000,000
Unlevered Free Cash Flow 659,684,931
Current Assets 3,523,000,000
Current Cash 1,875,000,000
Current Liabilities 1,956,000,000
Current Debt 600,000,000
Non-Cash Working Capital (NCWC) 292,000,000
Change in NCWC -209,000,000
EBIT 500,000,000
Tax Provision 31,000,000
Depreciation and Amortization 251,000,000
Capital Expenditure -183,000,000
Unlevered Free Cash Flow 304,614,035
Current Assets 2,450,000,000
Current Cash 724,000,000
Current Liabilities 1,501,000,000
Current Debt 276,000,000
Non-Cash Working Capital (NCWC) 501,000,000
Change in NCWC -165,000,000
EBIT 700,000,000
Tax Provision 15,000,000
Depreciation and Amortization 257,000,000
Capital Expenditure -226,000,000
Unlevered Free Cash Flow 540,759,615
Current Assets 2,094,000,000
Current Cash 296,000,000
Current Liabilities 1,389,000,000
Current Debt 257,000,000
Non-Cash Working Capital (NCWC) 666,000,000
Change in NCWC 109,000,000
EBIT 681,000,000
Tax Provision 36,000,000
Depreciation and Amortization 261,000,000
Capital Expenditure -237,000,000
Unlevered Free Cash Flow 772,092,307
Current Assets 2,071,000,000
Current Cash 414,000,000
Current Liabilities 1,100,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 557,000,000
Change in NCWC 4,000,000
EBIT 584,000,000
Tax Provision 136,000,000
Depreciation and Amortization 234,000,000
Capital Expenditure -170,000,000
Unlevered Free Cash Flow 481,562,231
Current Assets 1,839,000,000
Current Cash 308,000,000
Current Liabilities 1,238,000,000
Current Debt 260,000,000
Non-Cash Working Capital (NCWC) 553,000,000
Change in NCWC -27,000,000
EBIT 439,000,000
Tax Provision 80,000,000
Depreciation and Amortization 151,000,000
Capital Expenditure -124,000,000
Unlevered Free Cash Flow 335,705,882
Current Assets 2,005,000,000
Current Cash 680,000,000
Current Liabilities 823,000,000
Current Debt 78,000,000
Non-Cash Working Capital (NCWC) 580,000,000
Change in NCWC -40,000,000
EBIT 455,000,000
Tax Provision 63,000,000
Depreciation and Amortization 133,000,000
Capital Expenditure -117,000,000
Unlevered Free Cash Flow 359,870,967
Current Assets 2,102,000,000
Current Cash 663,000,000
Current Liabilities 908,000,000
Current Debt 89,000,000
Non-Cash Working Capital (NCWC) 620,000,000
Change in NCWC -45,000,000
EBIT 489,000,000
Tax Provision 84,000,000
Depreciation and Amortization 142,000,000
Capital Expenditure -119,000,000
Unlevered Free Cash Flow 369,432,304
Current Assets 2,009,000,000
Current Cash 533,000,000
Current Liabilities 853,000,000
Current Debt 42,000,000
Non-Cash Working Capital (NCWC) 665,000,000
Change in NCWC 70,000,000
EBIT 409,000,000
Tax Provision 70,000,000
Depreciation and Amortization 150,000,000
Capital Expenditure -126,000,000
Unlevered Free Cash Flow 406,926,174
Current Assets 1,874,000,000
Current Cash 504,000,000
Current Liabilities 781,000,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 595,000,000
Change in NCWC 83,000,000
EBIT 482,000,000
Tax Provision 91,000,000
Depreciation and Amortization 142,000,000
Capital Expenditure -112,000,000
Unlevered Free Cash Flow 481,953,608

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.