Discounted Cash Flow (DCF) Analysis Levered

Alamo Group Inc. (ALG)

$171.04

-7.53 (-4.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 165.57 | 171.04 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,119.14	1,163.47	1,334.22	1,513.62	1,675.49	1,854.67	2,053.01	2,272.57	2,515.61	2,784.63
Revenue (%)
Operating Cash Flow	88.81	184.33	49.67	14.53	119.22	131.97	146.08	161.70	179	198.14
Operating Cash Flow (%)
Capital Expenditure	-31.43	-17.87	-25.31	-31.30	-34.81	-38.53	-42.65	-47.21	-52.26	-57.85
Capital Expenditure (%)
Free Cash Flow	57.38	166.46	24.36	-16.77	84.41	93.44	103.43	114.49	126.74	140.29

Weighted Average Cost Of Capital

Share price	$ 171.04
Beta	0.974
Diluted Shares Outstanding	11.90
Cost of Debt
Tax Rate	24.11
After-tax Cost of Debt	3.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.290
Total Debt	371.27
Total Equity	2,034.69
Total Capital	2,405.96
Debt Weighting	15.43
Equity Weighting	84.57
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,119.14	1,163.47	1,334.22	1,513.62	1,675.49	1,854.67	2,053.01	2,272.57	2,515.61	2,784.63
Operating Cash Flow	88.81	184.33	49.67	14.53	119.22	131.97	146.08	161.70	179	198.14
Capital Expenditure	-31.43	-17.87	-25.31	-31.30	-34.81	-38.53	-42.65	-47.21	-52.26	-57.85
Free Cash Flow	57.38	166.46	24.36	-16.77	84.41	93.44	103.43	114.49	126.74	140.29
WACC
PV LFCF					84.41	86.84	89.34	91.90	94.55	97.27
SUM PV LFCF										459.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.60
Free cash flow (t + 1)	143.09
Terminal Value	2,555.27
Present Value of Terminal Value	1,771.64

Intrinsic Value

Enterprise Value	2,231.53
Net Debt	261.95
Equity Value	1,969.58
Shares Outstanding	11.90
Equity Value Per Share	165.57