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 2,826.463,093.792,988.312,940.163,980.074,376.154,811.655,290.495,816.986,395.86
Revenue (%)
Operating Cash Flow 151.91255.35170.36205.99323.52301.64331.65364.66400.95440.85
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 76.29201.2667.93148.50245.04198.55218.31240.03263.92290.18

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 2,826.463,093.792,988.312,940.163,980.074,376.154,811.655,290.495,816.986,395.86
Operating Cash Flow 151.91255.35170.36205.99323.52301.64331.65364.66400.95440.85
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 76.29201.2667.93148.50245.04198.55218.31240.03263.92290.18
WACC
PV LFCF 181.62182.67183.73184.79185.86
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