Discounted Cash Flow (DCF) Analysis Levered

Axalta Coating Systems Ltd. (AXTA)

$29.85

+0.21 (+0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 53.50 | 29.85 | undervalue

Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,737.604,416.204,884.405,586.736,390.047,308.868,359.809,561.8510,936.74
Revenue (%)
Operating Cash Flow 509.30558.60293.80601.32687.79786.69899.801,029.181,177.17
Operating Cash Flow (%)
Capital Expenditure -82.10-121.60-150.90-149.72-171.24-195.87-224.03-256.24-293.09
Capital Expenditure (%)
Free Cash Flow 427.20437142.90451.61516.55590.82675.77772.94884.08

Weighted Average Cost Of Capital

Share price $ 29.85
Beta 1.430
Diluted Shares Outstanding 236
Cost of Debt
Tax Rate 100.00
After-tax Cost of Debt 0.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.559
Total Debt 3,647.10
Total Equity 7,044.60
Total Capital 10,691.70
Debt Weighting 34.11
Equity Weighting 65.89
Wacc

Build Up Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,737.604,416.204,884.405,586.736,390.047,308.868,359.809,561.8510,936.74
Operating Cash Flow 509.30558.60293.80601.32687.79786.69899.801,029.181,177.17
Capital Expenditure -82.10-121.60-150.90-149.72-171.24-195.87-224.03-256.24-293.09
Free Cash Flow 427.20437142.90451.61516.55590.82675.77772.94884.08
WACC
PV LFCF 483.04516.55552.37590.69631.66675.47
SUM PV LFCF 2,773.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.96
Free cash flow (t + 1) 901.76
Terminal Value 18,180.74
Present Value of Terminal Value 12,986.88

Intrinsic Value

Enterprise Value 15,760.57
Net Debt 3,135
Equity Value 12,625.57
Shares Outstanding 236
Equity Value Per Share 53.50