Discounted Cash Flow (DCF) Analysis Levered

Acuity Brands, Inc. (AYI)

$150.69

-2.93 (-1.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 138.05 | 150.69 | 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	3,680.10	3,672.70	3,326.30	3,461	4,006.10	4,107.92	4,212.33	4,319.39	4,429.17	4,541.74
Revenue (%)
Operating Cash Flow	353.20	494.70	504.80	408.70	316.30	476.09	488.19	500.59	513.32	526.36
Operating Cash Flow (%)
Capital Expenditure	-43.60	-53	-54.90	-43.80	-56.50	-57.13	-58.59	-60.08	-61.60	-63.17
Capital Expenditure (%)
Free Cash Flow	309.60	441.70	449.90	364.90	259.80	418.95	429.60	440.52	451.72	463.20

Weighted Average Cost Of Capital

Share price	$ 150.69
Beta	1.568
Diluted Shares Outstanding	34.65
Cost of Debt
Tax Rate	22.25
After-tax Cost of Debt	3.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.038
Total Debt	596.10
Total Equity	5,220.66
Total Capital	5,816.76
Debt Weighting	10.25
Equity Weighting	89.75
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	3,680.10	3,672.70	3,326.30	3,461	4,006.10	4,107.92	4,212.33	4,319.39	4,429.17	4,541.74
Operating Cash Flow	353.20	494.70	504.80	408.70	316.30	476.09	488.19	500.59	513.32	526.36
Capital Expenditure	-43.60	-53	-54.90	-43.80	-56.50	-57.13	-58.59	-60.08	-61.60	-63.17
Free Cash Flow	309.60	441.70	449.90	364.90	259.80	418.95	429.60	440.52	451.72	463.20
WACC
PV LFCF						379.93	353.31	328.54	305.52	284.10
SUM PV LFCF										1,651.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.27
Free cash flow (t + 1)	472.46
Terminal Value	5,712.94
Present Value of Terminal Value	3,504.07

Intrinsic Value

Enterprise Value	5,155.48
Net Debt	372.90
Equity Value	4,782.58
Shares Outstanding	34.65
Equity Value Per Share	138.05