Discounted Cash Flow (DCF) Analysis Levered

ArcBest Corporation (ARCB)

$91.08

+0.31 (+0.34%)

All numbers are in Millions, Currency in USD

Stock DCF: 122.92 | 91.08 | undervalue

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	2,826.46	3,093.79	2,988.31	2,940.16	3,980.07	4,376.15	4,811.65	5,290.49	5,816.98	6,395.86
Revenue (%)
Operating Cash Flow	151.91	255.35	170.36	205.99	323.52	301.64	331.65	364.66	400.95	440.85
Operating Cash Flow (%)
Capital Expenditure	-75.62	-54.09	-102.43	-57.49	-78.47	-103.09	-113.35	-124.63	-137.03	-150.67
Capital Expenditure (%)
Free Cash Flow	76.29	201.26	67.93	148.50	245.04	198.55	218.31	240.03	263.92	290.18

Weighted Average Cost Of Capital

Share price	$ 91.08
Beta	1.586
Diluted Shares Outstanding	26.42
Cost of Debt
Tax Rate	22.96
After-tax Cost of Debt	2.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.337
Total Debt	337.11
Total Equity	2,406.56
Total Capital	2,743.67
Debt Weighting	12.29
Equity Weighting	87.71
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	2,826.46	3,093.79	2,988.31	2,940.16	3,980.07	4,376.15	4,811.65	5,290.49	5,816.98	6,395.86
Operating Cash Flow	151.91	255.35	170.36	205.99	323.52	301.64	331.65	364.66	400.95	440.85
Capital Expenditure	-75.62	-54.09	-102.43	-57.49	-78.47	-103.09	-113.35	-124.63	-137.03	-150.67
Free Cash Flow	76.29	201.26	67.93	148.50	245.04	198.55	218.31	240.03	263.92	290.18
WACC
PV LFCF						181.62	182.67	183.73	184.79	185.86
SUM PV LFCF										918.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.32
Free cash flow (t + 1)	295.99
Terminal Value	4,043.54
Present Value of Terminal Value	2,589.79

Intrinsic Value

Enterprise Value	3,508.45
Net Debt	260.49
Equity Value	3,247.96
Shares Outstanding	26.42
Equity Value Per Share	122.92