LII
Lennox International Inc. (LII)
Last Price$587.0(2.3%)
Market Cap$21.4B
DCF value
$195.3
Overvalued (DCF value)
(66.7%)
Discount Rate
8.5%
Long-Term Growth Rate
2.0%
Stock quality
8/10
Great

LII DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
3,634.1
(4.5%)
4,194.1
15.4%
4,718.4
12.5%
4,981.9
5.6%
5,341.3
7.2%
5,531.2
3.6%
5,891.2
6.5%
6,269.5
6.4%
6,637.4
5.9%
6,990.2
5.3%
7,323.1
4.8%
7,631.5
4.2%
7,910.6
3.7%
8,156.2
3.1%
8,364.4
2.6%
8,531.7
2.0%
478.5
13.2%
590.3
14.1%
656.2
13.9%
790.1
15.9%
1,034.8
19.4%
790.1
14.3%
841.5
14.3%
895.5
14.3%
948.1
14.3%
998.5
14.3%
1,046.0
14.3%
1,090.1
14.3%
1,129.9
14.3%
1,165.0
14.3%
1,194.8
14.3%
1,218.7
14.3%
NOPAT
% effective tax rate
383.8
10.6%
489.0
11.7%
529.7
11.2%
632.2
12.7%
840.2
15.7%
641.5
11.6%
683.2
11.6%
727.1
11.6%
769.8
11.6%
810.7
11.6%
849.3
11.6%
885.1
11.6%
917.4
11.6%
945.9
11.6%
970.1
11.6%
989.5
11.6%
% of revenue
72.6
2.0%
72.4
1.7%
77.9
1.7%
86.0
1.7%
0.0
0.0%
62.3
1.1%
66.3
1.1%
70.6
1.1%
74.7
1.1%
78.7
1.1%
82.4
1.1%
85.9
1.1%
89.1
1.1%
91.8
1.1%
94.2
1.1%
96.0
1.1%
% of revenue
(78.5)
(2.2%)
(106.8)
(2.5%)
(101.1)
(2.1%)
(250.2)
(5.0%)
(163.6)
(3.1%)
(188.6)
(3.4%)
(200.8)
(3.4%)
(213.7)
(3.4%)
(226.3)
(3.4%)
(238.3)
(3.4%)
(249.7)
(3.4%)
(260.2)
(3.4%)
(269.7)
(3.4%)
(278.1)
(3.4%)
(285.2)
(3.4%)
(290.9)
(3.4%)
136.1
3.7%
(52.6)
(1.3%)
(267.9)
(5.7%)
8.8
0.2%
42.5
0.8%
(86.8)
(1.6%)
(92.4)
(1.6%)
(98.3)
(1.6%)
(104.1)
(1.6%)
(109.6)
(1.6%)
(114.9)
(1.6%)
(119.7)
(1.6%)
(124.1)
(1.6%)
(127.9)
(1.6%)
(131.2)
(1.6%)
(133.8)
(1.6%)
Free Cash Flow to Firm (FCFF)
% of revenue
514.0
14.1%
402.0
9.6%
238.6
5.1%
476.8
9.6%
719.1
13.5%
428.4
7.7%
456.3
7.7%
485.6
7.7%
514.1
7.7%
541.4
7.7%
567.2
7.7%
591.1
7.7%
612.7
7.7%
631.7
7.7%
647.9
7.7%
660.8
7.7%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.88
0.81
0.75
0.69
0.64
0.59
0.54
0.50
0.46
Discounted FCFF (DFCFF)
341.4
403.5
395.6
385.8
374.4
361.3
346.9
331.3
314.7
297.3

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LII DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
3,552.1M
43.4%
Terminal Value (TV)
10.1B
Discounted TV
% share of EV
4,632.7M
56.6%
Total Debt
1,488.6M
7,118.5M
Shares outstanding
36.4M
FX rate
1.0
66.7% overvalued

Equity Value Bridge

LII DCF Financials

Revenue
$5,341.3M -> $8,364.4M 4.6% CAGR
Operating Income
$1,034.8M -> $1,194.8M 1.4% CAGR
FCFF
$719.1M -> $647.9M (1.0%) CAGR

LII DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
$195.0
$205.0
$216.0
$229.0
$245.0
8.5%
$180.0
$188.0
$197.0
$208.0
$220.0
8.5%
$178.0
$186.0
$195.0
$206.0
$218.0
9.5%
$154.0
$160.0
$166.0
$174.0
$182.0
10.0%
$144.0
$149.0
$154.0
$160.0
$167.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
(67.0%)
(65.0%)
(63.0%)
(61.0%)
(58.0%)
8.5%
(69.0%)
(68.0%)
(66.0%)
(65.0%)
(63.0%)
8.5%
(70.0%)
(68.0%)
(67.0%)
(65.0%)
(63.0%)
9.5%
(74.0%)
(73.0%)
(72.0%)
(70.0%)
(69.0%)
10.0%
(75.0%)
(75.0%)
(74.0%)
(73.0%)
(72.0%)

Explore more intrinsic value tools hub for LII

FAQ

What is Lennox International Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Lennox International Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $195.3. This suggests it may be overvalued by (66.7%) compared to its current price of around $587.0, using a WACC of 8.5% and growth rates of 2.0%.

What is Lennox International Inc. WACC?

As of Mar 03, 2025, Lennox International Inc.'s Weighted Average Cost of Capital (WACC) is approximately 8.5%.

What is Lennox International Inc. Enterprise Value?

As of Mar 03, 2025, Lennox International Inc.'s Enterprise Value (EV) is approximately $8,184.8M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.