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	893.60	975.30	1,038.10	936.90	1,106.60	1,172.85	1,243.06	1,317.48	1,396.35	1,479.94
Revenue (%)
Operating Cash Flow	170.40	203.20	182.70	218.80	187.20	229.35	243.08	257.63	273.05	289.40
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	80.70	131.30	111.40	163.40	107.40	141.61	150.09	159.07	168.60	178.69

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	893.60	975.30	1,038.10	936.90	1,106.60	1,172.85	1,243.06	1,317.48	1,396.35	1,479.94
Operating Cash Flow	170.40	203.20	182.70	218.80	187.20	229.35	243.08	257.63	273.05	289.40
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	80.70	131.30	111.40	163.40	107.40	141.61	150.09	159.07	168.60	178.69
WACC
PV LFCF						131.72	129.85	128.01	126.20	124.41
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