Discounted Cash Flow (DCF) Analysis Levered

Arcosa, Inc. (ACA)

$71.9

-2.25 (-3.03%)

All numbers are in Millions, Currency in USD

Stock DCF: 94.51 | 71.9 | 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	1,460.40	1,736.90	1,935.60	2,036.40	2,242.80	2,499.13	2,784.76	3,103.03	3,457.68	3,852.86
Revenue (%)
Operating Cash Flow	118.50	358.80	259.90	166.50	174.30	290.63	323.85	360.86	402.11	448.06
Operating Cash Flow (%)
Capital Expenditure	-44.80	-85.40	-82.10	-85.10	-138	-112.75	-125.64	-140	-156	-173.83
Capital Expenditure (%)
Free Cash Flow	73.70	273.40	177.80	81.40	36.30	177.88	198.21	220.87	246.11	274.24

Weighted Average Cost Of Capital

Share price	$ 71.9
Beta	0.581
Diluted Shares Outstanding	48.50
Cost of Debt
Tax Rate	22.26
After-tax Cost of Debt	4.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.318
Total Debt	550.60
Total Equity	3,487.15
Total Capital	4,037.75
Debt Weighting	13.64
Equity Weighting	86.36
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	1,460.40	1,736.90	1,935.60	2,036.40	2,242.80	2,499.13	2,784.76	3,103.03	3,457.68	3,852.86
Operating Cash Flow	118.50	358.80	259.90	166.50	174.30	290.63	323.85	360.86	402.11	448.06
Capital Expenditure	-44.80	-85.40	-82.10	-85.10	-138	-112.75	-125.64	-140	-156	-173.83
Free Cash Flow	73.70	273.40	177.80	81.40	36.30	177.88	198.21	220.87	246.11	274.24
WACC
PV LFCF						166.37	173.39	180.70	188.32	196.26
SUM PV LFCF										905.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.92
Free cash flow (t + 1)	279.72
Terminal Value	5,685.41
Present Value of Terminal Value	4,068.80

Intrinsic Value

Enterprise Value	4,973.84
Net Debt	390.20
Equity Value	4,583.64
Shares Outstanding	48.50
Equity Value Per Share	94.51