Investor's Craft

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Investor's Craft

Intrinsic Value of Sealed Air Corporation (SEE)

Previous Close	$29.00
Intrinsic Value	$31.27
Upside potential	+8%

Previous Close

$29.00

Intrinsic Value

$31.27

Potential

+8%

VALUATION INPUT DATA

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036	2037	2038	2039	2040	2041	2042	2043	2044	2045	2046	2047	2048	2049
INCOME STATEMENT
Revenue growth rate, %	-1.8	-1.5	-1.1	-0.8	-0.5	-0.3	0.0	0.3	0.5	0.7	0.9	1.1	1.3	1.5	1.7	1.8	2.0	2.2	2.3	2.4	2.6	2.7	2.8	2.9	3.0
Revenue, $	5296	5218	5159	5116	5089	5075	5075	5088	5113	5149	5197	5256	5326	5406	5497	5599	5711	5834	5968	6114	6270	6439	6619	6812	7017
Variable operating expenses, $m	4554	4488	4437	4400	4376	4365	4365	4376	4397	4428	4470	4520	4580	4649	4728	4815	4912	5018	5133	5258	5393	5537	5692	5858	6035
Fixed operating expenses, $m	22	24	26	28	31	33	36	39	42	46	50	54	59	64	69	75	81	88	96	104	113	122	133	144	156
Total operating expenses, $m	4576	4512	4463	4428	4407	4398	4401	4415	4439	4474	4520	4574	4639	4713	4797	4890	4993	5106	5229	5362	5506	5659	5825	6002	6191
Operating income, $m	719	707	696	688	682	677	675	673	673	675	678	682	687	693	701	709	718	729	740	752	765	779	794	810	826
EBITDA, $m	961	944	930	919	911	905	902	901	901	904	908	915	922	932	943	955	969	984	1001	1019	1039	1060	1082	1106	1131
Interest expense (income), $m	12	29	25	22	20	19	19	19	19	20	22	24	27	30	34	38	43	48	53	59	66	73	81	89	98
Earnings before tax, $m	707	678	671	666	661	658	656	655	654	655	656	658	660	663	667	671	676	681	687	693	699	706	713	721	728
Tax expense, $m	191	183	181	180	179	178	177	177	177	177	177	178	178	179	180	181	182	184	185	187	189	191	193	195	197
Net income, $m	516	495	490	486	483	480	479	478	478	478	479	480	482	484	487	490	493	497	501	506	510	515	521	526	532
BALANCE SHEET
Cash and short-term investments, $m	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Total assets, $m	6725	6627	6552	6497	6462	6445	6446	6462	6493	6540	6600	6675	6764	6866	6981	7110	7253	7410	7580	7764	7963	8177	8406	8651	8912
Adjusted assets (=assets-cash), $m	6725	6627	6552	6497	6462	6445	6446	6462	6493	6540	6600	6675	6764	6866	6981	7110	7253	7410	7580	7764	7963	8177	8406	8651	8912
Average production assets, $m	4316	4253	4204	4170	4147	4136	4136	4147	4167	4197	4236	4284	4340	4406	4480	4563	4655	4755	4864	4983	5110	5248	5394	5551	5719
Working capital, $m	101	99	98	97	97	96	96	97	97	98	99	100	101	103	104	106	109	111	113	116	119	122	126	129	133
Total debt, $m	717	629	561	512	481	465	465	480	508	550	605	672	752	844	948	1064	1192	1333	1486	1652	1831	2024	2230	2450	2685
Total liabilities, $m	6053	5964	5897	5848	5816	5801	5801	5816	5844	5886	5940	6008	6087	6179	6283	6399	6528	6669	6822	6988	7167	7359	7566	7786	8020
Total equity, $m	673	663	655	650	646	645	645	646	649	654	660	668	676	687	698	711	725	741	758	776	796	818	841	865	891
Debt-to-equity ratio	0.460	1.082	0.960	0.863	0.792	0.746	0.722	0.720	0.739	0.777	0.834	0.906	0.994	1.095	1.208	1.333	1.467	1.609	1.759	1.914	2.075	2.240	2.408	2.578	2.749
Adjusted equity ratio	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100
CASH FLOW
Net income, $m	516	495	490	486	483	480	479	478	478	478	479	480	482	484	487	490	493	497	501	506	510	515	521	526	532
Depreciation, amort., depletion, $m	241	237	234	231	229	228	227	227	228	229	231	233	235	238	242	246	251	256	261	267	274	281	288	296	305
Funds from operations, $m	758	732	724	717	712	708	706	705	705	707	709	713	717	723	729	736	744	753	762	773	784	796	809	822	837
Change in working capital, $m	-2	-1	-1	-1	-1	0	0	0	0	1	1	1	1	2	2	2	2	2	3	3	3	3	3	4	4
Cash from operations, $m	759	734	725	718	712	709	706	705	705	706	708	712	716	721	727	734	742	750	760	770	781	793	805	819	833
Maintenance CAPEX, $m	-241	-237	-234	-231	-229	-228	-227	-227	-228	-229	-231	-233	-235	-238	-242	-246	-251	-256	-261	-267	-274	-281	-288	-296	-305
New CAPEX, $m	0	0	0	0	0	0	0	-10	-20	-30	-39	-48	-57	-66	-74	-83	-92	-100	-109	-118	-128	-137	-147	-157	-167
Total CAPEX, $m	-241	-237	-234	-231	-229	-228	-227	-238	-248	-259	-270	-281	-292	-304	-316	-329	-342	-356	-371	-386	-401	-418	-435	-453	-472
Free cash flow, $m	518	496	491	487	483	481	479	467	457	447	439	431	424	417	411	405	400	394	389	384	380	375	370	365	360
Issuance/(repurchase) of shares, $m	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Retained Cash Flow, $m	-424	10	8	5	3	2	0	-2	-3	-5	-6	-7	-9	-10	-12	-13	-14	-16	-17	-18	-20	-21	-23	-24	-26
Pot'l extraordinary dividend, $m	376
Cash available for distribution, $m	470	504	497	491	486	482	479	466	454	443	433	423	415	407	399	392	385	379	372	366	360	354	347	341	334
Discount rate, %	4.90	5.15	5.40	5.67	5.96	6.25	6.57	6.89	7.24	7.60	7.98	8.38	8.80	9.24	9.70	10.19	10.70	11.23	11.79	12.38	13.00	13.65	14.33	15.05	15.80
PV of cash for distribution, $m	448	456	425	394	364	335	307	273	242	213	186	161	139	118	100	83	68	56	45	35	28	21	16	12	9
Current shareholders' claim on cash, %	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100	100

Investor's Craft

Investor's Craft

Intrinsic Value of Sealed Air Corporation (SEE)

VALUATION INPUT DATA

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

INCOME STATEMENT

BALANCE SHEET

CASH FLOW