Discounted Cash Flow (DCF) Analysis Levered

Armstrong World Industries, Inc. (AWI)

$82.46

+1.31 (+1.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 49.47 | 82.46 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 893.60975.301,038.10936.901,106.601,172.851,243.061,317.481,396.351,479.94
Revenue (%)
Operating Cash Flow 170.40203.20182.70218.80187.20229.35243.08257.63273.05289.40
Operating Cash Flow (%)
Capital Expenditure -89.70-71.90-71.30-55.40-79.80-87.74-92.99-98.55-104.45-110.71
Capital Expenditure (%)
Free Cash Flow 80.70131.30111.40163.40107.40141.61150.09159.07168.60178.69

Weighted Average Cost Of Capital

Share price $ 82.46
Beta 1.178
Diluted Shares Outstanding 47.90
Cost of Debt
Tax Rate 24.52
After-tax Cost of Debt 2.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.351
Total Debt 671.60
Total Equity 3,949.83
Total Capital 4,621.43
Debt Weighting 14.53
Equity Weighting 85.47
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 893.60975.301,038.10936.901,106.601,172.851,243.061,317.481,396.351,479.94
Operating Cash Flow 170.40203.20182.70218.80187.20229.35243.08257.63273.05289.40
Capital Expenditure -89.70-71.90-71.30-55.40-79.80-87.74-92.99-98.55-104.45-110.71
Free Cash Flow 80.70131.30111.40163.40107.40141.61150.09159.07168.60178.69
WACC
PV LFCF 131.72129.85128.01126.20124.41
SUM PV LFCF 640.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.51
Free cash flow (t + 1) 182.26
Terminal Value 3,307.86
Present Value of Terminal Value 2,303.05

Intrinsic Value

Enterprise Value 2,943.24
Net Debt 573.50
Equity Value 2,369.74
Shares Outstanding 47.90
Equity Value Per Share 49.47