Discounted Cash Flow (DCF) Analysis Levered

ATI Inc. (ATI)

$37.5

+1.34 (+3.71%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.84 | 37.5 | overvalue

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	4,046.60	4,122.50	2,982.10	2,799.80	3,836	3,885	3,934.63	3,984.89	4,035.79	4,087.34
Revenue (%)
Operating Cash Flow	392.80	230.10	166.90	16.10	224.90	212.30	215.01	217.76	220.54	223.36
Operating Cash Flow (%)
Capital Expenditure	-139.20	-168.20	-136.50	-152.60	-0.90	-136.53	-138.27	-140.04	-141.83	-143.64
Capital Expenditure (%)
Free Cash Flow	253.60	61.90	30.40	-136.50	224	75.77	76.74	77.72	78.71	79.72

Weighted Average Cost Of Capital

Share price	$ 37.5
Beta	1.215
Diluted Shares Outstanding	126.50
Cost of Debt
Tax Rate	19.20
After-tax Cost of Debt	4.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.218
Total Debt	1,748
Total Equity	4,743.75
Total Capital	6,491.75
Debt Weighting	26.93
Equity Weighting	73.07
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	4,046.60	4,122.50	2,982.10	2,799.80	3,836	3,885	3,934.63	3,984.89	4,035.79	4,087.34
Operating Cash Flow	392.80	230.10	166.90	16.10	224.90	212.30	215.01	217.76	220.54	223.36
Capital Expenditure	-139.20	-168.20	-136.50	-152.60	-0.90	-136.53	-138.27	-140.04	-141.83	-143.64
Free Cash Flow	253.60	61.90	30.40	-136.50	224	75.77	76.74	77.72	78.71	79.72
WACC
PV LFCF						70.28	66.01	62.01	58.24	54.71
SUM PV LFCF										311.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.82
Free cash flow (t + 1)	81.31
Terminal Value	1,397.14
Present Value of Terminal Value	958.84

Intrinsic Value

Enterprise Value	1,270.09
Net Debt	1,164
Equity Value	106.09
Shares Outstanding	126.50
Equity Value Per Share	0.84