Discounted Cash Flow (DCF) Analysis Levered

Aramark (ARMK)

$32.75

-1.65 (-4.80%)
All numbers are in Millions, Currency in USD
Stock DCF: -37.62 | 32.75 | 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 14,604.4115,789.6316,227.3412,829.5612,095.9611,619.1111,161.0610,721.0610,298.419,892.42
Revenue (%)
Operating Cash Flow 1,053.391,047.35984.23176.68657.08620.94596.46572.95550.36528.66
Operating Cash Flow (%)
Capital Expenditure -702.96-2,906.87-558.59-437.63-407.82-777.28-746.64-717.20-688.93-661.77
Capital Expenditure (%)
Free Cash Flow 350.42-1,859.52425.64-260.95249.26-156.34-150.18-144.26-138.57-133.11

Weighted Average Cost Of Capital

Share price $ 32.75
Beta 1.777
Diluted Shares Outstanding 254.75
Cost of Debt
Tax Rate 31.63
After-tax Cost of Debt 3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.272
Total Debt 7,833.93
Total Equity 8,343
Total Capital 16,176.92
Debt Weighting 48.43
Equity Weighting 51.57
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 14,604.4115,789.6316,227.3412,829.5612,095.9611,619.1111,161.0610,721.0610,298.419,892.42
Operating Cash Flow 1,053.391,047.35984.23176.68657.08620.94596.46572.95550.36528.66
Capital Expenditure -702.96-2,906.87-558.59-437.63-407.82-777.28-746.64-717.20-688.93-661.77
Free Cash Flow 350.42-1,859.52425.64-260.95249.26-156.34-150.18-144.26-138.57-133.11
WACC
PV LFCF -145.35-129.81-115.93-103.53-92.46
SUM PV LFCF -587.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.56
Free cash flow (t + 1) -135.77
Terminal Value -2,441.88
Present Value of Terminal Value -1,696.17

Intrinsic Value

Enterprise Value -2,283.25
Net Debt 7,301.33
Equity Value -9,584.58
Shares Outstanding 254.75
Equity Value Per Share -37.62