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Xylem Inc – Pump and Pumping Equipment Manufacturing
Xylem (XYL) is a leading global water technology company committed to solving critical water and infrastructure challenges with technological innovation. The Company has more than 16,000 diverse employees that delivered revenue of $5.25 billion in 2019. The Company is creating a more sustainable world by enabling its customers to optimize water and resource management, and helping communities in more than 150 countries become water-secure.
Analysis Results
Intrinsic Value $58.14
Latest Price $106.03
Relative Value 82% overvalued
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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 5.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. 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 658 606
2024 695 589
2025 733 572
2026 774 556
2027 817 540
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 12600 million. This corresponds to a present value of 7640 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2860 million. Adding in the terminal value gives a total present value of 10500 million.

There are presently 181.0 million outstanding shares, so the intrinsic value per share is 58.14.

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

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