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
Stock DCF: 45.27 | 71.12 | overvalue

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 975.301,038.10936.901,106.601,233.101,313.981,400.161,491.991,589.841,694.12
Revenue (%)
Operating Cash Flow 203.20182.70218.80187.20182.40245.70261.82278.99297.29316.79
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 131.30111.40163.40107.40107.60157.85168.20179.23190.99203.52

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 975.301,038.10936.901,106.601,233.101,313.981,400.161,491.991,589.841,694.12
Operating Cash Flow 203.20182.70218.80187.20182.40245.70261.82278.99297.29316.79
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 131.30111.40163.40107.40107.60157.85168.20179.23190.99203.52
WACC
PV LFCF 145.26142.43139.67136.95134.29
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