Edgewell Personal Care Co (Edgewell Personal Care Co) Intrinsic Value: DCF (Dividends Based) : $25.97 (As of Apr. 30, 2024)

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What is Edgewell Personal Care Co Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-30), Edgewell Personal Care Co's intrinsic value calculated from the Discounted Dividend model is $25.97.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Edgewell Personal Care Co's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Edgewell Personal Care Co is -44.63%.

The historical rank and industry rank for Edgewell Personal Care Co's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

EPC's Price-to-DCF (Dividends Based) is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 1.05
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Edgewell Personal Care Co Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Edgewell Personal Care Co's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Edgewell Personal Care Co Intrinsic Value: DCF (Dividends Based) Chart

Edgewell Personal Care Co Annual Data

Trend

Sep14

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Sep23

Intrinsic Value: DCF (Dividends Based)

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Edgewell Personal Care Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Edgewell Personal Care Co's Intrinsic Value: DCF (Dividends Based)

For the Household & Personal Products subindustry, Edgewell Personal Care Co's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Edgewell Personal Care Co's Price-to-DCF (Dividends Based) Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Edgewell Personal Care Co's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Edgewell Personal Care Co's Price-to-DCF (Dividends Based) falls into.

Edgewell Personal Care Co Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.63%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Edgewell Personal Care Co's average Dividend Growth Rate in the past 3 years was 0.00%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $2.25.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Edgewell Personal Care Co's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

2.25

11.5406

25.97

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(25.97	-	37.56)	/	25.97
	=	-44.63 %

Edgewell Personal Care Co (NYSE:EPC) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Edgewell Personal Care Co Intrinsic Value: DCF (Dividends Based) Related Terms

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Edgewell Personal Care Co (Edgewell Personal Care Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Edgewell Personal Care Co (NYSE:EPC) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

EGZ:Germany

Address

6 Research Drive, Shelton, CT, USA, 06484

Website

https://www.edgewell.com

Edgewell Personal Care Co is a personal-care company. The operating segments of the company include Wet Shave, Sun and Skin Care and Feminine Care. Some of the brands offered by the company include Edge, Skintimate, Personna, Schick, Carefree, Playtex, Banana Boat and Hawaiian Tropic. It derives a majority of its revenue from the United States.

Executives

John N Hill	officer: VP, Global Human Resources	C/O EDGEWELL PERSONAL CARE COMPANY, 6 RESEARCH DRIVE, SHELTON CT 06484
Robert Andrew Schmidt	officer: Chief Accounting Officer	C/O NEWELL BRANDS INC., 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Latanya Langley	officer: Chief Legal Officer	C/O EDGEWELL PERSONAL CARE COMPANY, 6 RESEARCH DRIVE, SHELTON CT 06484
Priscilla Kasenchak	officer: Chief Accounting Officer	1111 MARCUS AVENUE, LAKE SUCCESS NY 11042
Anne-sophie Gaget	officer: Chief Growth & Innovation Ofcr	C/O EDGEWELL PERSONAL CARE FRANCE, 1 RUE FRANCOIS JACOB, RUEIL MALMAISON I0 92500
Carla C Hendra	director	885 WEST END AVE. 12B, NEW YORK NY 10025
Swan Sit	director	95 JACKSON STREET, NEWTON MA 02459
Nicholas Fj Powell	officer: President, International	C/O EDGEWELL PERSONAL CARE COMPANY, 6 RESEARCH DRIVE, SHELTON CT 06484
Paul Hibbert	officer: Chief Supply Chain Officer	C/O EDGEWELL PERSONAL CARE COMPANY, 6 RESEARCH DRIVE, SHELTON CT 06484
Eric F O'toole	officer: President, North America	C/O EDGEWELL PERSONAL CARE COMPANY, 6 RESEARCH DRIVE, SHELTON CT 06484
R David Hoover	director	C/O EDGEWELL PERSONAL CARE COMPANY, 1350 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD MO 63017
James C Johnson	director	1901 CHOUTEAU AVENUE, P. O. BOX 66149, MC-1370, ST. LOUIS MO 63166-6149
Marisa Iasenza	officer: Chief Legal Officer	C/O EDGEWELL PERSONAL CARE COMPANY, 6 RESEARCH DRIVE, SHELTON CT 06484
Rod R Little	officer: Chief Financial Officer	1 HSN DRIVE, ST. PETERSBURG FL 33729
Daniel J Heinrich	director	CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612