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	3,737.60	4,416.20	4,884.40	5,586.73	6,390.04	7,308.86	8,359.80	9,561.85	10,936.74
Revenue (%)
Operating Cash Flow	509.30	558.60	293.80	601.32	687.79	786.69	899.80	1,029.18	1,177.17
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	427.20	437	142.90	451.61	516.55	590.82	675.77	772.94	884.08

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	3,737.60	4,416.20	4,884.40	5,586.73	6,390.04	7,308.86	8,359.80	9,561.85	10,936.74
Operating Cash Flow	509.30	558.60	293.80	601.32	687.79	786.69	899.80	1,029.18	1,177.17
Capital Expenditure	-82.10	-121.60	-150.90	-149.72	-171.24	-195.87	-224.03	-256.24	-293.09
Free Cash Flow	427.20	437	142.90	451.61	516.55	590.82	675.77	772.94	884.08
WACC
PV LFCF				483.04	516.55	552.37	590.69	631.66	675.47
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