POWL
Powell Industries, Inc. (POWL)
Last Price$156.1(8.0%)
Market Cap$1,974.9M
DCF value
$191.7
Undervalued (DCF value)
22.8%
Discount Rate
8.1%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Great

POWL DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Sep'20 ActualSep'21 ActualSep'22 ActualSep'23 ActualSep'24 ActualSep'25 EstimateSep'26 EstimateSep'27 EstimateSep'28 EstimateSep'29 EstimateSep'30 EstimateSep'31 EstimateSep'32 EstimateSep'33 EstimateSep'34 EstimateSep'35 Terminal
% growth
518.5
0.3%
470.6
(9.2%)
532.6
13.2%
699.3
31.3%
1,012.4
44.8%
1,111.4
9.8%
1,172.9
5.5%
1,331.0
13.5%
1,491.4
12.0%
1,649.7
10.6%
1,801.0
9.2%
1,940.5
7.7%
2,062.9
6.3%
2,163.4
4.9%
2,237.7
3.4%
2,282.4
2.0%
19.1
3.7%
1.0
0.2%
(5.1)
(1.0%)
62.5
8.9%
178.8
17.7%
62.6
5.6%
66.1
5.6%
75.0
5.6%
84.0
5.6%
92.9
5.6%
101.5
5.6%
109.3
5.6%
116.2
5.6%
121.9
5.6%
126.1
5.6%
128.6
5.6%
NOPAT
% effective tax rate
15.6
3.0%
0.6
0.1%
(7.1)
(1.3%)
49.4
7.1%
136.6
13.5%
47.9
4.3%
50.5
4.3%
57.3
4.3%
64.2
4.3%
71.0
4.3%
77.5
4.3%
83.6
4.3%
88.8
4.3%
93.1
4.3%
96.3
4.3%
98.3
4.3%
% of revenue
10.6
2.0%
10.4
2.2%
9.4
1.8%
8.6
1.2%
0.0
0.0%
11.1
1.0%
11.7
1.0%
13.3
1.0%
14.9
1.0%
16.5
1.0%
18.0
1.0%
19.4
1.0%
20.6
1.0%
21.6
1.0%
22.3
1.0%
22.8
1.0%
% of revenue
(5.1)
(1.0%)
(2.9)
(0.6%)
(2.5)
(0.5%)
(7.8)
(1.1%)
(12.0)
(1.2%)
(10.2)
(0.9%)
(10.8)
(0.9%)
(12.3)
(0.9%)
(13.7)
(0.9%)
(15.2)
(0.9%)
(16.6)
(0.9%)
(17.9)
(0.9%)
(19.0)
(0.9%)
(19.9)
(0.9%)
(20.6)
(0.9%)
(21.0)
(0.9%)
40.5
7.8%
(43.1)
(9.2%)
(24.1)
(4.5%)
122.7
17.5%
(45.3)
(4.5%)
31.7
2.9%
33.5
2.9%
38.0
2.9%
42.5
2.9%
47.1
2.9%
51.4
2.9%
55.4
2.9%
58.8
2.9%
61.7
2.9%
63.8
2.9%
65.1
2.9%
Free Cash Flow to Firm (FCFF)
% of revenue
61.6
11.9%
(35.0)
(7.4%)
(24.2)
(4.5%)
173.0
24.7%
79.4
7.8%
80.4
7.2%
84.9
7.2%
96.3
7.2%
107.9
7.2%
119.4
7.2%
130.3
7.2%
140.4
7.2%
149.3
7.2%
156.5
7.2%
161.9
7.2%
165.2
7.2%
% of FCFF used in calculation
57.8%
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
0.89
0.82
0.76
0.70
0.65
0.60
0.56
0.52
0.48
Discounted FCFF (DFCFF)
44.7
75.5
79.3
82.2
84.1
84.9
84.6
83.2
80.7
77.3

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POWL DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
776.5M
37.5%
Terminal Value (TV)
2,707.1M
Discounted TV
% share of EV
1,291.5M
62.5%
Total Debt
1,216.0K
2,425.2M
Shares outstanding
12.7M
FX rate
1.0
22.8% undervalued

Equity Value Bridge

POWL DCF Financials

Revenue
$1,012.4M -> $2,237.7M 8.3% CAGR
Operating Income
$178.8M -> $126.1M (3.4%) CAGR
FCFF
$79.4M -> $161.9M 7.4% CAGR

POWL DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
$207.0
$218.0
$230.0
$244.0
$244.0
7.5%
$192.0
$201.0
$211.0
$223.0
$237.0
8.1%
$177.0
$184.0
$192.0
$201.0
$212.0
8.5%
$169.0
$174.0
$181.0
$189.0
$198.0
9.0%
$159.0
$164.0
$169.0
$176.0
$183.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
33.0%
40.0%
47.0%
56.0%
56.0%
7.5%
23.0%
29.0%
35.0%
43.0%
52.0%
8.1%
13.0%
18.0%
23.0%
29.0%
36.0%
8.5%
8.0%
11.0%
16.0%
21.0%
27.0%
9.0%
2.0%
5.0%
8.0%
13.0%
17.0%

Explore more intrinsic value tools hub for POWL

FAQ

What is Powell Industries, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Powell Industries, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $191.7. This suggests it may be undervalued by 22.8% compared to its current price of around $156.1, using a WACC of 8.1% and growth rates of 2.0%.

What is Powell Industries, Inc. WACC?

As of Mar 03, 2025, Powell Industries, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 8.1%.

What is Powell Industries, Inc. Enterprise Value?

As of Mar 03, 2025, Powell Industries, Inc.'s Enterprise Value (EV) is approximately $2,068.0M. 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.