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ENR Valuation Bremer_031213

ENR Valuation Bremer_031213 - Energizer WACC Assumptions...

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Energizer WACC Assumptions Ticker Company Total Debt Tax Rate 31% NYSE: AVP Avon Products Inc 1.50 3195.9 8468.757 38% 1.19 Risk Free Rate 3.11% NYSE: NWL Newell Rubbermaid Inc 1.71 1918.4 6721.808 29% 1.43 Mkt Risk Premium 6.15% NYSE: SPB Sprectrum Brands Holdings 0.83 3222.3 2837.366 114% 0.46 ENR Weight of Debt 31% NYSE: CLX The Clorox Company 0.37 2674 11026.27 24% 0.32 ENR Cost of Debt 3.09% NYSE: EL Estee Lauder Companies 1.33 1356.1 25086.474 5% 1.28 ENR Tax Rate 31% NYSE: ER Energizer Holdings Inc 1.29 2552.9 5678.706 45% 0.98 Average 1.17 0.94 Average Unlevered Beta for Comps 0.94 D/E 45% Tax Rate 31% ENR Levered Beta 1.24 Wacc ENR InPuts (CapIQ) Mkt Risk Premium 6.15% Company Name Energizer Holdings Inc Multiplied by Bottom up Beta 1.24 Ticker ENR Adj: MRP 7.61% Total Debt 2552.9 Add: RFR 3.11% Total Preferred 0 Cost of Equity 10.72% Multiplied by STZ Weight of Equity 69% Market Cap 5677.9 Cost of Equity Portion 7.40% Cash and Equivalents 718.5 Shares Outstanding 61.9 Cost of Debt 3.09% Tax Rate 31% A-T Cost of Debt 2.15% Multiplied by STZ Weight of Debt 31% Current Value $91.74 A-T Cost of Debt Portion 0.67% WACC 8.06% Levered Beta Mkt. Value Equity Debt/ Equity Unlevered Beta
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Research NFA- See how they will close plants, restructure 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 4331 3999.8 4248.3 4645.7 4567.2 4658.544 4751.71488 4846.74918 4943.68416 5042.55784 5143.409 5246.27718 5351.20272 5458.22678 5512.80905 Revenue Growth -7.6% 6.2% 9.4% -1.7% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% Net Fixed Assets 835.5 863.4 840.6 885.4 848.5 838.54 831.55 823.95 840.43 857.23 874.38 891.87 909.70 927.90 937.18 Net Fixed Assets / Revenues 19.3% 21.6% 19.8% 19.1% 18.6% 18.0% 17.5% 17.0% 17.0% 17.0% 17.0% 17.0% 17.0% 17.0% 17.0% EBIT 692.7 653.3 695.2 664.3 680.8 698.78 712.76 751.25 766.27 781.60 797.23 839.40 856.19 873.32 882.05 EBIT Margin 16.0% 16.3% 16.4% 14.3% 14.9% 15.0% 15.0% 15.5% 15.5% 15.5% 15.5% 16.0% 16.0% 16.0% 16.0% Taxes 210.65 216.40 179.62 236.92 188.44 213.43 217.89 225.82 236.80 234.10 242.40 254.99 259.76 265.45 267.20 Tax Rate 30.4% 33.1% 25.8% 35.7% 27.7% 30.5% 30.6% 30.1% 30.9% 30.0% 30.4% 30.4% 30.3% 30.4% 30.3% Depreciation 136 124.5 133.4 176.1 159.5 159.322205 149.679019 150.875986 157.997719 159.28958 162.097486 164.516372 168.618678 172.407089 173.720058 Depr Rate as % of Net Fixed Assets 16.3% 14.4% 15.9% 19.9% 18.8% 19.0% 18.0% 18.3% 18.8% 18.6% 18.5% 18.4% 18.5% 18.6% 18.5% CAPX 2040.9 412.2 107.9 357.5 91.7 149.36 142.691203 143.273242 174.476667 176.098106 179.242182 182.003962 186.456021 190.601179 183.00 CAPX Rate as % of Net Fixed Assets 244% 48% 13% 40% 11% 18% 17% 17% 21% 21% 20% 20% 20% 21% 20% Non-Cash WC 493.9 607 546.3 762.1 496.6 621.60306 652.466622 651.512952 670.3076 655.016059 689.889205 704.419186 715.252405 728.727064 733.722303 Non-Cash WC/Revenue 11% 15% 13% 16% 11% 13% 14% 13% 14% 13% 13% 13% 13% 13% 13% Chg in Non-Cash WC 113.1 -60.7 215.8 -265.5 125.00306 30.8635612 -0.9536696 18.7946479 -15.291541 34.8731458 14.5299807 10.8332198 13.4746584 4.99523934 FCFF 370.31 470.99 533.99 494.19 545.98 502.81 552.40 567.76 576.20 600.57 Terminal Value 8587.0203 Total Cash Flows 370.31 470.99 533.99 494.19 545.98 502.81 552.40 567.76 576.20 9187.59 Firm Value $7,361.30 WACC 8.06% Less: LT Debt 2138.6 Terminal Growth 1% Plus: Cash and Mkt Sec. 718.5 Shares Outstanding 61.9 Equity Value $5,941.20 Intrinsic Value $95.98 Current Value $91.74 Premium/Discount $4.24 Discount 4.6%
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Ratios Growth Profit(LTM) Efficiency Risk Sales Growth Net Income Growth Company (Exchange: Ticker) 1 Year 5 Year CAGR 1 Year 5 Year Avon Products Inc (NYSE: AVP) 10.1 19.22 -5.1% 1.5% - - 61.1% -0.4% 8.6% 9.3% -2.7% 1.50 38% Church & Dwight Co (NYSE: CHD) 12.6 21.95 6.3% 5.6% 13.0% 15.7% 44.3% 12.0% 21.6% 13.0% 17.1% Err:509 Err:509 Colgate-Palmolive Co (NYSE: CL) 12.6 20.09 2.1% 4.4% 1.7% 7.3% 58.2% 14.5% 25.9% 33.3% 106.7% Err:509 Err:509 Newell Rubbermaid Inc (NYSE:NWL) 9 12.99 0.7% -1.6% 220.5% -3.0% 37.8% 6.8% 15.4% 11.7% 20.7% 1.71 29% Proctor & Gamble Co (NYSE: PG) 11.7 18.46 -0.4% 1.1% 27.9% 3.0% 50.2% 15.5% 23.6% 10.3% 17.5% Err:509 Err:509 Sprectrum Brands Holdings (NYSE: SPB) 9.1 15.21 3.1% 5.2% - - 34.6% 0.7% 13.8% 6.3% 2.2% 0.83 114% The Clorox Company (NYSE: CLX) 11.2 18.9 5.5% 2.3% 1.3% 2.5% 42.6% 10.0% 20.2% 22.0% - 0.37 24% Estee Lauder Companies (NYSE: EL) 12.8 23.64 5.7% 6.0% 10.4% 15.8% 79.8% 9.3% 18.1% 22.5% 32.3% 1.33 5% Mean 11.1 18.8 0.0 0.0 0.5 0.1 0.5 0.1 0.2 0.2 0.3 Err:509 Err:509 Median 11.2 18.9 2.2% 3.1% 13.0% 6.9% 50.2% 9.3% 18.4% 13.0% 19.1% Err:509 Err:509 Energizer Holdings Inc (NYSE: ENR) 7.9 13.25 -2.3% 4.9% 34.1% 5.5% 46.8% 8.7% 18.7% 18.4% 18.4% 1.29 45% NTM TEV/EBITDA NTM P/E Ratio Target Multiple 8.6 Target Multiple 14.5 NTM EBITDA 904.3 NTM EPS 6.81 Target EV 7776.98 Implied Share Price $98.75 Less: Current Price $91.74 Debt 2552.9 Premium/Discount 7.6% Preferred Stock 0 Undervalued Minority Interest 0 Plus: Cash and Equivalents 718.5 Equity Value 5942.58 Shares Outstanding 61.9
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