Discounted Cash Flow (DCF) Analysis Levered

American Vanguard Corporation (AVD)

$10.93

+0.06 (+0.55%)

All numbers are in Millions, Currency in USD

Stock DCF: 27.08 | 10.93 | undervalue

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	454.27	468.19	458.70	556.87	609.62	658.25	710.76	767.46	828.68	894.79
Revenue (%)
Operating Cash Flow	11.35	9.40	89.20	87.32	57.11	64.51	69.65	75.21	81.21	87.69
Operating Cash Flow (%)
Capital Expenditure	-27.70	-12.98	-11.25	-10.04	-14.55	-20.42	-22.05	-23.81	-25.71	-27.76
Capital Expenditure (%)
Free Cash Flow	-16.35	-3.58	77.95	77.28	42.55	44.08	47.60	51.40	55.50	59.93

Weighted Average Cost Of Capital

Share price	$ 10.93
Beta	0.984
Diluted Shares Outstanding	29.87
Cost of Debt
Tax Rate	23.80
After-tax Cost of Debt	3.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.216
Total Debt	76.25
Total Equity	326.50
Total Capital	402.75
Debt Weighting	18.93
Equity Weighting	81.07
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	454.27	468.19	458.70	556.87	609.62	658.25	710.76	767.46	828.68	894.79
Operating Cash Flow	11.35	9.40	89.20	87.32	57.11	64.51	69.65	75.21	81.21	87.69
Capital Expenditure	-27.70	-12.98	-11.25	-10.04	-14.55	-20.42	-22.05	-23.81	-25.71	-27.76
Free Cash Flow	-16.35	-3.58	77.95	77.28	42.55	44.08	47.60	51.40	55.50	59.93
WACC
PV LFCF						40.73	40.64	40.55	40.46	40.37
SUM PV LFCF										202.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.22
Free cash flow (t + 1)	61.12
Terminal Value	982.69
Present Value of Terminal Value	662.03

Intrinsic Value

Enterprise Value	864.80
Net Debt	55.92
Equity Value	808.88
Shares Outstanding	29.87
Equity Value Per Share	27.08