LCI Industries (LCI Industries) Intrinsic Value: DCF (Dividends Based) : $67.84 (As of May. 15, 2024)

View and export this data going back to 1985. Start your Free Trial

What is LCI Industries Intrinsic Value: DCF (Dividends Based)?

As of today (2024-05-15), LCI Industries's intrinsic value calculated from the Discounted Dividend model is $67.84.

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.

LCI Industries's Predictability Rank is 3.5-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for LCI Industries is -67.35%.

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

LCII' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 0.21 Med: 0.87 Max: 3.18
Current: 1.69

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of LCI Industries was 3.18. The lowest was 0.21. And the median was 0.87.

LCII's Price-to-DCF (Dividends Based) is ranked worse than
72.63% of 179 companies
in the Vehicles & Parts industry
Industry Median: 0.91 vs LCII: 1.69

LCI Industries Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for LCI Industries'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.

LCI Industries Intrinsic Value: DCF (Dividends Based) Chart

LCI Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

Get a 7-Day Free Trial

221.01

139.11

349.98

323.20

51.03

LCI Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															168.38	69.27	36.98	51.03	67.84

Competitive Comparison of LCI Industries's Intrinsic Value: DCF (Dividends Based)

For the Recreational Vehicles subindustry, LCI Industries'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.

LCI Industries's Price-to-DCF (Dividends Based) Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, LCI Industries's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where LCI Industries's Price-to-DCF (Dividends Based) falls into.

LCI Industries 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 4.34%. 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 = 13.70%
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.
=> LCI Industries's average Dividend Growth Rate in the past 5 years was 13.70%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 13.70%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $3.312.
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.

LCI Industries'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+0.137)/(1+0.11) = 1.0243243243243
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)]

3.312

20.4843

67.84

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(67.84	-	113.53)	/	67.84
	=	-67.35 %

LCI Industries (NYSE:LCII) 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.

LCI Industries Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of LCI Industries's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

LCI Industries (LCI Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » LCI Industries Inc (NYSE:LCII) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

0DI:Germany

Address

3501 County Road 6 East, Elkhart, IN, USA, 46514

Website

https://www.lci1.com

LCI Industries Inc supplies domestically and internationally components for the original equipment manufacturers of recreational vehicles and adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo. It has two reportable segments the original equipment manufacturers segment and the aftermarket segment. The OEM Segment manufactures or distributes components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products are sold primarily to major manufacturers of RVs such as Thor Industries, Forest River, Winnebago and other RV OEMs, and to manufacturers in adjacent industries.

Executives

Brendan Deely	director	USG CORPORATION, 125 SOUTH FRANKLIN STREET, CHICAGO IL 60606
Linda Kristine Myers	director	3556 LAKE SHORE ROAD, P.O. BOX 2028, BUFFALO NY 14219
Stephanie K. Mains	director	C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Lillian Etzkorn	officer: EVP & CFO	1570 FOREST LANE, BLOOMFIELD HILLS MI 48301
Eileen S Pruitt	officer: Deputy CHRO	C/O LCI INDUSTRIES, 3501 COUNTRY ROAD 6 EAST, ELKHART IN 46514
Nick C Fletcher	officer: CHIEF HUMAN RESOURCES OFFICER	3305 HIDDEN SPRINGS LANE, PROSPECT KY 40059
James Gero	director	C/O ORTHOFIX INTERNATIONAL, 3451 PLANO PARKWAY, LEWISVILLE TX 75056
Kieran M O'sullivan	director	2375 CABOT DRIVE, LISLE IL 60532
Jamie Schnur	officer: Chief Administrative Officer	C/O LIPPERT COMPONENTS, 2703 COLLEGE AVENUE, GOSHEN IN 46526
Jason Lippert	director, officer: Chief Executive Officer	C/O LIPPERT COMPONENTS INC, 2375 TAMIAMI TRAIL NORTH STE 11, NAPLES FL 34103
Ryan Richard Smith	officer: Group President - N.A.	C/O LCI INDUSTRIES, 3501 COUNTY ROAD 6 EAST, ELKHART IN 46514
David A Reed	director	TEXAS INDUSTRIES INC, 1341 W MOCKINGBIRD LN, DALLAS TX 75247
Ronald Fenech	director	419 WEST PIKE STREET, JACKSON CENTER OH 45334
John A. Sirpilla	director	C/O LCI INDUSTRIES, 3501, ELKHART IN 46514
Scott T Mereness	officer: President	C/O LIPPERT COMPONENTS, INC., 2766 COLLEGE AVENUE, GOSHEN IN 46528