Discounted Cash Flow (DCF) Analysis Levered

Applied Industrial Technologies, In... (AIT)

$158.2

+3.10 (+2.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 109.99 | 158.2 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,472.743,245.653,235.923,810.684,412.794,707.615,022.125,357.645,715.586,097.43
Revenue (%)
Operating Cash Flow 180.60296.71241.70187.57343.97325.09346.81369.98394.70421.07
Operating Cash Flow (%)
Capital Expenditure -18.97-20.11-15.85-18.12-26.48-25.72-27.44-29.27-31.22-33.31
Capital Expenditure (%)
Free Cash Flow 161.63276.60225.85169.45317.49299.38319.38340.72363.48387.76

Weighted Average Cost Of Capital

Share price $ 158.2
Beta 1.211
Diluted Shares Outstanding 39.22
Cost of Debt
Tax Rate 22.91
After-tax Cost of Debt 3.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.245
Total Debt 622.10
Total Equity 6,204.60
Total Capital 6,826.70
Debt Weighting 9.11
Equity Weighting 90.89
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,472.743,245.653,235.923,810.684,412.794,707.615,022.125,357.645,715.586,097.43
Operating Cash Flow 180.60296.71241.70187.57343.97325.09346.81369.98394.70421.07
Capital Expenditure -18.97-20.11-15.85-18.12-26.48-25.72-27.44-29.27-31.22-33.31
Free Cash Flow 161.63276.60225.85169.45317.49299.38319.38340.72363.48387.76
WACC
PV LFCF 273.18265.93258.87252245.31
SUM PV LFCF 1,295.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.59
Free cash flow (t + 1) 395.52
Terminal Value 5,211.02
Present Value of Terminal Value 3,296.62

Intrinsic Value

Enterprise Value 4,591.89
Net Debt 278.06
Equity Value 4,313.83
Shares Outstanding 39.22
Equity Value Per Share 109.99