Discounted Cash Flow (DCF) Analysis Levered
Armstrong World Industries, Inc. (AWI)
$71.12
-0.98 (-1.36%)
All numbers are in Millions, Currency in USD
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 | 975.30 | 1,038.10 | 936.90 | 1,106.60 | 1,233.10 | 1,313.98 | 1,400.16 | 1,491.99 | 1,589.84 | 1,694.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 203.20 | 182.70 | 218.80 | 187.20 | 182.40 | 245.70 | 261.82 | 278.99 | 297.29 | 316.79 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -71.90 | -71.30 | -55.40 | -79.80 | -74.80 | -87.85 | -93.62 | -99.76 | -106.30 | -113.27 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 131.30 | 111.40 | 163.40 | 107.40 | 107.60 | 157.85 | 168.20 | 179.23 | 190.99 | 203.52 |
Weighted Average Cost Of Capital
| Share price | $ 71.12 |
|---|---|
| Beta | 1.135 |
| Diluted Shares Outstanding | 47.96 |
| Cost of Debt | |
| Tax Rate | 21.23 |
| After-tax Cost of Debt | 3.10% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.793 |
| Total Debt | 687 |
| Total Equity | 3,410.78 |
| Total Capital | 4,097.78 |
| Debt Weighting | 16.77 |
| Equity Weighting | 83.23 |
| 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 | 975.30 | 1,038.10 | 936.90 | 1,106.60 | 1,233.10 | 1,313.98 | 1,400.16 | 1,491.99 | 1,589.84 | 1,694.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 203.20 | 182.70 | 218.80 | 187.20 | 182.40 | 245.70 | 261.82 | 278.99 | 297.29 | 316.79 |
| Capital Expenditure | -71.90 | -71.30 | -55.40 | -79.80 | -74.80 | -87.85 | -93.62 | -99.76 | -106.30 | -113.27 |
| Free Cash Flow | 131.30 | 111.40 | 163.40 | 107.40 | 107.60 | 157.85 | 168.20 | 179.23 | 190.99 | 203.52 |
| WACC | ||||||||||
| PV LFCF | 145.26 | 142.43 | 139.67 | 136.95 | 134.29 | |||||
| SUM PV LFCF | 698.60 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.67 |
| Free cash flow (t + 1) | 207.59 |
| Terminal Value | 3,112.24 |
| Present Value of Terminal Value | 2,053.64 |
Intrinsic Value
| Enterprise Value | 2,752.24 |
|---|---|
| Net Debt | 581 |
| Equity Value | 2,171.24 |
| Shares Outstanding | 47.96 |
| Equity Value Per Share | 45.27 |