Discounted Cash Flow (DCF) Analysis Levered
Arrow Electronics, Inc. (ARW)
$118.63
+1.00 (+0.85%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 29,676.77 | 28,916.85 | 28,673.36 | 34,477.02 | 37,124.42 | 39,399.84 | 41,814.72 | 44,377.61 | 47,097.59 | 49,984.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 272.69 | 857.99 | 1,359.84 | 418.98 | -33.08 | 768.66 | 815.78 | 865.78 | 918.84 | 975.16 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -155.34 | -150.81 | -124.30 | -83.05 | -78.84 | -152.22 | -161.55 | -171.45 | -181.96 | -193.11 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 117.35 | 707.19 | 1,235.55 | 335.93 | -111.91 | 616.45 | 654.23 | 694.33 | 736.89 | 782.05 |
Weighted Average Cost Of Capital
| Share price | $ 118.63 |
|---|---|
| Beta | 1.408 |
| Diluted Shares Outstanding | 65.45 |
| Cost of Debt | |
| Tax Rate | 24.27 |
| After-tax Cost of Debt | 3.73% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.253 |
| Total Debt | 3,772.85 |
| Total Equity | 7,764.69 |
| Total Capital | 11,537.54 |
| Debt Weighting | 32.70 |
| Equity Weighting | 67.30 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 29,676.77 | 28,916.85 | 28,673.36 | 34,477.02 | 37,124.42 | 39,399.84 | 41,814.72 | 44,377.61 | 47,097.59 | 49,984.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 272.69 | 857.99 | 1,359.84 | 418.98 | -33.08 | 768.66 | 815.78 | 865.78 | 918.84 | 975.16 |
| Capital Expenditure | -155.34 | -150.81 | -124.30 | -83.05 | -78.84 | -152.22 | -161.55 | -171.45 | -181.96 | -193.11 |
| Free Cash Flow | 117.35 | 707.19 | 1,235.55 | 335.93 | -111.91 | 616.45 | 654.23 | 694.33 | 736.89 | 782.05 |
| WACC | ||||||||||
| PV LFCF | 570.15 | 559.65 | 549.35 | 539.23 | 529.30 | |||||
| SUM PV LFCF | 2,747.69 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.12 |
| Free cash flow (t + 1) | 797.69 |
| Terminal Value | 13,034.20 |
| Present Value of Terminal Value | 8,821.74 |
Intrinsic Value
| Enterprise Value | 11,569.43 |
|---|---|
| Net Debt | 3,595.93 |
| Equity Value | 7,973.50 |
| Shares Outstanding | 65.45 |
| Equity Value Per Share | 121.82 |