Discounted Cash Flow (DCF) Analysis Levered

Allison Transmission Holdings, Inc. (ALSN)

$75.4

+0.32 (+0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 98.76 | 75.4 | undervalue

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 2,6982,0812,4022,7693,0353,167.343,305.453,449.583,6003,756.97
Revenue (%)
Operating Cash Flow 847561635657784851.05888.15926.88967.301,009.48
Operating Cash Flow (%)
Capital Expenditure -172-115-175-167-125-185.84-193.94-202.40-211.22-220.43
Capital Expenditure (%)
Free Cash Flow 675446460490659665.21694.21724.48756.08789.04

Weighted Average Cost Of Capital

Share price $ 75.4
Beta 0.967
Diluted Shares Outstanding 91
Cost of Debt
Tax Rate 18.62
After-tax Cost of Debt 3.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.723
Total Debt 2,521
Total Equity 6,861.40
Total Capital 9,382.40
Debt Weighting 26.87
Equity Weighting 73.13
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 2,6982,0812,4022,7693,0353,167.343,305.453,449.583,6003,756.97
Operating Cash Flow 847561635657784851.05888.15926.88967.301,009.48
Capital Expenditure -172-115-175-167-125-185.84-193.94-202.40-211.22-220.43
Free Cash Flow 675446460490659665.21694.21724.48756.08789.04
WACC
PV LFCF 619.32601.73584.65568.05551.92
SUM PV LFCF 2,925.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.41
Free cash flow (t + 1) 792.99
Terminal Value 11,475.96
Present Value of Terminal Value 8,027.23

Intrinsic Value

Enterprise Value 10,952.90
Net Debt 1,966
Equity Value 8,986.90
Shares Outstanding 91
Equity Value Per Share 98.76