Discounted Cash Flow (DCF) Analysis Levered

American Vanguard Corporation (AVD)

$17.87

+0.83 (+4.87%)
All numbers are in Millions, Currency in USD
Stock DCF: 50.06 | 17.87 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 468.19458.70556.87609.62668.23732.49802.92880.13964.761,057.53
Revenue (%)
Operating Cash Flow 9.4089.2086.3657.1177.4084.8493101.94111.74122.49
Operating Cash Flow (%)
Capital Expenditure -12.98-15.26-10.04-14.55-17.19-18.85-20.66-22.64-24.82-27.21
Capital Expenditure (%)
Free Cash Flow -3.5873.9376.3242.5560.2065.9972.3479.3086.9295.28

Weighted Average Cost Of Capital

Share price $ 17.87
Beta 0.934
Diluted Shares Outstanding 29.87
Cost of Debt
Tax Rate 23.80
After-tax Cost of Debt 3.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.150
Total Debt 121.98
Total Equity 533.81
Total Capital 655.79
Debt Weighting 18.60
Equity Weighting 81.40
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 468.19458.70556.87609.62668.23732.49802.92880.13964.761,057.53
Operating Cash Flow 9.4089.2086.3657.1177.4084.8493101.94111.74122.49
Capital Expenditure -12.98-15.26-10.04-14.55-17.19-18.85-20.66-22.64-24.82-27.21
Free Cash Flow -3.5873.9376.3242.5560.2065.9972.3479.3086.9295.28
WACC
PV LFCF 60.2061.4862.7864.1265.4766.86
SUM PV LFCF 320.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.34
Free cash flow (t + 1) 97.18
Terminal Value 1,819.93
Present Value of Terminal Value 1,277.16

Intrinsic Value

Enterprise Value 1,597.88
Net Debt 102.41
Equity Value 1,495.47
Shares Outstanding 29.87
Equity Value Per Share 50.06