Discounted Cash Flow (DCF) Analysis Levered

The Aaron's Company, Inc. (AAN)

$12.89

+0.64 (+5.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 465.67 | 12.89 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,794.72	1,784.48	1,734.92	1,845.50	2,249.43	2,389.54	2,538.37	2,696.47	2,864.42	3,042.82
Revenue (%)
Operating Cash Flow	186.54	185.98	355.77	136.04	170.43	268.92	285.67	303.46	322.36	342.44
Operating Cash Flow (%)
Capital Expenditure	-67.10	-79.93	-69.04	-92.70	-107.98	-105.24	-111.79	-118.76	-126.15	-134.01
Capital Expenditure (%)
Free Cash Flow	119.44	106.04	286.73	43.34	62.45	163.68	173.87	184.70	196.21	208.43

Weighted Average Cost Of Capital

Share price	$ 12.89
Beta	1.011
Diluted Shares Outstanding	30.88
Cost of Debt
Tax Rate	64.19
After-tax Cost of Debt	0.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.461
Total Debt	738.81
Total Equity	398.06
Total Capital	1,136.87
Debt Weighting	64.99
Equity Weighting	35.01
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,794.72	1,784.48	1,734.92	1,845.50	2,249.43	2,389.54	2,538.37	2,696.47	2,864.42	3,042.82
Operating Cash Flow	186.54	185.98	355.77	136.04	170.43	268.92	285.67	303.46	322.36	342.44
Capital Expenditure	-67.10	-79.93	-69.04	-92.70	-107.98	-105.24	-111.79	-118.76	-126.15	-134.01
Free Cash Flow	119.44	106.04	286.73	43.34	62.45	163.68	173.87	184.70	196.21	208.43
WACC
PV LFCF						158.50	163.04	167.71	172.51	177.45
SUM PV LFCF										839.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.27
Free cash flow (t + 1)	212.60
Terminal Value	16,739.93
Present Value of Terminal Value	14,252.23

Intrinsic Value

Enterprise Value	15,091.44
Net Debt	711.10
Equity Value	14,380.34
Shares Outstanding	30.88
Equity Value Per Share	465.67