Discounted Cash Flow (DCF) Analysis Levered
Asbury Automotive Group, Inc. (ABG)
$210.55
-7.94 (-3.63%)
All numbers are in Millions, Currency in USD
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 | 6,874.40 | 7,210.30 | 7,131.80 | 9,837.70 | 15,433.90 | 19,239.29 | 23,982.93 | 29,896.17 | 37,267.37 | 46,456.03 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 10.10 | 349.80 | 652.50 | 1,163.70 | 1,002.30 | 1,249.42 | 1,557.48 | 1,941.49 | 2,420.19 | 3,016.91 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -57.90 | -66.80 | -48.80 | -82 | -126.81 | -158.07 | -197.05 | -245.63 | -306.20 | -381.69 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -47.80 | 283 | 603.70 | 1,081.70 | 875.49 | 1,091.35 | 1,360.43 | 1,695.86 | 2,113.99 | 2,635.21 |
Weighted Average Cost Of Capital
| Share price | $ 210.55 |
|---|---|
| Beta | 1.124 |
| Diluted Shares Outstanding | 22.40 |
| Cost of Debt | |
| Tax Rate | 24.40 |
| After-tax Cost of Debt | 1.69% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.999 |
| Total Debt | 4,561.20 |
| Total Equity | 4,716.32 |
| Total Capital | 9,277.52 |
| Debt Weighting | 49.16 |
| Equity Weighting | 50.84 |
| 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 | 6,874.40 | 7,210.30 | 7,131.80 | 9,837.70 | 15,433.90 | 19,239.29 | 23,982.93 | 29,896.17 | 37,267.37 | 46,456.03 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 10.10 | 349.80 | 652.50 | 1,163.70 | 1,002.30 | 1,249.42 | 1,557.48 | 1,941.49 | 2,420.19 | 3,016.91 |
| Capital Expenditure | -57.90 | -66.80 | -48.80 | -82 | -126.81 | -158.07 | -197.05 | -245.63 | -306.20 | -381.69 |
| Free Cash Flow | -47.80 | 283 | 603.70 | 1,081.70 | 875.49 | 1,091.35 | 1,360.43 | 1,695.86 | 2,113.99 | 2,635.21 |
| WACC | ||||||||||
| PV LFCF | 1,035.34 | 1,224.37 | 1,447.92 | 1,712.28 | 2,024.92 | |||||
| SUM PV LFCF | 7,444.82 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.41 |
| Free cash flow (t + 1) | 2,687.92 |
| Terminal Value | 78,824.60 |
| Present Value of Terminal Value | 60,569.32 |
Intrinsic Value
| Enterprise Value | 68,014.14 |
|---|---|
| Net Debt | 4,382.30 |
| Equity Value | 63,631.84 |
| Shares Outstanding | 22.40 |
| Equity Value Per Share | 2,840.71 |