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	468.19	458.70	556.87	609.62	668.23	732.49	802.92	880.13	964.76	1,057.53
Revenue (%)
Operating Cash Flow	9.40	89.20	86.36	57.11	77.40	84.84	93	101.94	111.74	122.49
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	-3.58	73.93	76.32	42.55	60.20	65.99	72.34	79.30	86.92	95.28

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	468.19	458.70	556.87	609.62	668.23	732.49	802.92	880.13	964.76	1,057.53
Operating Cash Flow	9.40	89.20	86.36	57.11	77.40	84.84	93	101.94	111.74	122.49
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	-3.58	73.93	76.32	42.55	60.20	65.99	72.34	79.30	86.92	95.28
WACC
PV LFCF					60.20	61.48	62.78	64.12	65.47	66.86
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