VMI
Valmont Industries, Inc. (VMI)
Last Price$321.01.0%
Market Cap$6,405.8M
DCF value
$237.4
Overvalued (DCF value)
(26.1%)
Discount Rate
8.8%
Long-Term Growth Rate
2.0%
Stock quality
8/10
Great

VMI 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
2,895.4
4.6%
3,501.6
20.9%
4,345.3
24.1%
4,174.6
(3.9%)
4,075.0
(2.4%)
4,105.2
0.7%
4,308.2
4.9%
4,478.8
4.0%
4,681.8
4.5%
4,877.1
4.2%
5,062.8
3.8%
5,237.3
3.4%
5,398.9
3.1%
5,546.0
2.7%
5,677.0
2.4%
5,790.5
2.0%
226.0
7.8%
286.8
8.2%
433.2
10.0%
291.6
7.0%
524.6
12.9%
402.1
9.8%
422.0
9.8%
438.7
9.8%
458.6
9.8%
477.7
9.8%
495.9
9.8%
513.0
9.8%
528.8
9.8%
543.2
9.8%
556.1
9.8%
567.2
9.8%
NOPAT
% effective tax rate
167.8
5.8%
219.1
6.3%
303.8
7.0%
180.4
4.3%
392.5
9.6%
300.9
7.3%
315.8
7.3%
328.3
7.3%
343.2
7.3%
357.5
7.3%
371.1
7.3%
383.9
7.3%
395.7
7.3%
406.5
7.3%
416.1
7.3%
424.4
7.3%
% of revenue
82.9
2.9%
92.6
2.6%
97.2
2.2%
98.7
2.4%
0.0
0.0%
63.0
1.5%
66.1
1.5%
68.7
1.5%
71.8
1.5%
74.8
1.5%
77.6
1.5%
80.3
1.5%
82.8
1.5%
85.1
1.5%
87.1
1.5%
88.8
1.5%
% of revenue
(106.7)
(3.7%)
(107.8)
(3.1%)
(93.3)
(2.1%)
(96.8)
(2.3%)
(79.5)
(1.9%)
(87.8)
(2.1%)
(92.1)
(2.1%)
(95.8)
(2.1%)
(100.1)
(2.1%)
(104.3)
(2.1%)
(108.3)
(2.1%)
(112.0)
(2.1%)
(115.4)
(2.1%)
(118.6)
(2.1%)
(121.4)
(2.1%)
(123.8)
(2.1%)
52.3
1.8%
(284.7)
(8.1%)
(56.1)
(1.3%)
(80.6)
(1.9%)
128.2
3.1%
(1.0)
(0.0%)
(1.1)
(0.0%)
(1.1)
(0.0%)
(1.2)
(0.0%)
(1.2)
(0.0%)
(1.2)
(0.0%)
(1.3)
(0.0%)
(1.3)
(0.0%)
(1.4)
(0.0%)
(1.4)
(0.0%)
(1.4)
(0.0%)
Free Cash Flow to Firm (FCFF)
% of revenue
196.3
6.8%
(80.9)
(2.3%)
251.6
5.8%
101.8
2.4%
441.3
10.8%
275.1
6.7%
288.7
6.7%
300.1
6.7%
313.7
6.7%
326.8
6.7%
339.2
6.7%
350.9
6.7%
361.7
6.7%
371.6
6.7%
380.4
6.7%
388.0
6.7%
% of FCFF used in calculation
80.0%
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
0.63
0.58
0.53
0.49
0.45
Discounted FCFF (DFCFF)
211.0
254.5
243.2
233.8
223.9
213.7
203.2
192.6
181.9
171.2

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VMI DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
2,129.0M
45.2%
Terminal Value (TV)
5,733.7M
Discounted TV
% share of EV
2,580.6M
54.8%
Total Debt
136.9M
4,737.0M
Shares outstanding
20.0M
FX rate
1.0
26.1% overvalued

Equity Value Bridge

VMI DCF Financials

Revenue
$4,075.0M -> $5,677.0M 3.4% CAGR
Operating Income
$524.6M -> $556.1M 0.6% CAGR
FCFF
$441.3M -> $380.4M (1.5%) CAGR

VMI DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
$245.0
$256.0
$268.0
$282.0
$299.0
8.5%
$229.0
$237.0
$247.0
$259.0
$272.0
8.8%
$221.0
$228.0
$237.0
$248.0
$260.0
9.5%
$201.0
$207.0
$214.0
$222.0
$231.0
10.0%
$190.0
$195.0
$201.0
$207.0
$215.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
(24.0%)
(20.0%)
(17.0%)
(12.0%)
(7.0%)
8.5%
(29.0%)
(26.0%)
(23.0%)
(19.0%)
(15.0%)
8.8%
(31.0%)
(29.0%)
(26.0%)
(23.0%)
(19.0%)
9.5%
(37.0%)
(36.0%)
(33.0%)
(31.0%)
(28.0%)
10.0%
(41.0%)
(39.0%)
(37.0%)
(36.0%)
(33.0%)

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FAQ

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

As of Mar 11, 2025, Valmont Industries, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $237.4. This suggests it may be overvalued by (26.1%) compared to its current price of around $321.0, using a WACC of 8.8% and growth rates of 2.0%.

What is Valmont Industries, Inc. WACC?

As of Mar 11, 2025, Valmont Industries, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 8.8%.

What is Valmont Industries, Inc. Enterprise Value?

As of Mar 11, 2025, Valmont Industries, Inc.'s Enterprise Value (EV) is approximately $4,709.6M. 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.