What is Energizer Holdings, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Energizer Holdings, Inc.'s reported free cash flow gives -$30.45 per share.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -3.5% | 10.0% | -$35.37 | - |
| Base | 1.5% | 9.0% | -$30.45 | - |
| Bull | 6.5% | 8.0% | -$20.88 | - |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | -$27.02 | -$25.99 | -$24.72 | -$23.15 | -$21.12 |
| 8.0% | -$29.57 | -$28.90 | -$28.11 | -$27.16 | -$26.00 |
| 9.0% | -$31.44 | -$30.98 | -$30.45 | -$29.83 | -$29.11 |
| 10.0% | -$32.86 | -$32.54 | -$32.17 | -$31.75 | -$31.26 |
| 11.0% | -$33.99 | -$33.75 | -$33.49 | -$33.19 | -$32.85 |
Where the presets come from
Base: years 1 to 5 grow at Energizer Holdings, Inc.'s revenue growth rate over the last 5 fiscal years (1.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions