Discounted Cash Flow (DCF) Analysis Levered

A. O. Smith Corporation (AOS)

$55.82

+1.69 (+3.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 53.07 | 55.82 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,996.703,187.902,992.702,895.303,538.903,709.053,887.384,074.284,270.174,475.48
Revenue (%)
Operating Cash Flow 326.40448.90456.20562.10641.10576.74604.46633.53663.99695.91
Operating Cash Flow (%)
Capital Expenditure -94.20-85.20-64.40-56.80-75.10-89.40-93.70-98.21-102.93-107.88
Capital Expenditure (%)
Free Cash Flow 232.20363.70391.80505.30566487.33510.76535.32561.06588.03

Weighted Average Cost Of Capital

Share price $ 55.82
Beta 1.147
Diluted Shares Outstanding 162.60
Cost of Debt
Tax Rate 22.14
After-tax Cost of Debt 1.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.539
Total Debt 219
Total Equity 9,076.56
Total Capital 9,295.56
Debt Weighting 2.36
Equity Weighting 97.64
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,996.703,187.902,992.702,895.303,538.903,709.053,887.384,074.284,270.174,475.48
Operating Cash Flow 326.40448.90456.20562.10641.10576.74604.46633.53663.99695.91
Capital Expenditure -94.20-85.20-64.40-56.80-75.10-89.40-93.70-98.21-102.93-107.88
Free Cash Flow 232.20363.70391.80505.30566487.33510.76535.32561.06588.03
WACC
PV LFCF 414.96401.32388.13375.37363.04
SUM PV LFCF 2,105.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.37
Free cash flow (t + 1) 599.80
Terminal Value 9,415.94
Present Value of Terminal Value 6,299.68

Intrinsic Value

Enterprise Value 8,405.12
Net Debt -224.30
Equity Value 8,629.42
Shares Outstanding 162.60
Equity Value Per Share 53.07