Discounted Cash Flow (DCF) Analysis Levered

Biglari Holdings Inc. (BH)

$127.03

+2.96 (+2.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 155.68 | 127.03 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 839.80809.89668.84433.68366.11300.46246.59202.38166.09136.31
Revenue (%)
Operating Cash Flow 25.7820.6893.68117.56228.7765.6453.8744.2136.2829.78
Operating Cash Flow (%)
Capital Expenditure -8.03-17.80-17.68-20.70-64.55-16.95-13.91-11.41-9.37-7.69
Capital Expenditure (%)
Free Cash Flow 17.752.887696.85164.2248.6939.9632.7926.9122.09

Weighted Average Cost Of Capital

Share price $ 127.03
Beta 1.799
Diluted Shares Outstanding 1.59
Cost of Debt
Tax Rate 16.06
After-tax Cost of Debt 4.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.250
Total Debt 121.38
Total Equity 201.50
Total Capital 322.88
Debt Weighting 37.59
Equity Weighting 62.41
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 839.80809.89668.84433.68366.11300.46246.59202.38166.09136.31
Operating Cash Flow 25.7820.6893.68117.56228.7765.6453.8744.2136.2829.78
Capital Expenditure -8.03-17.80-17.68-20.70-64.55-16.95-13.91-11.41-9.37-7.69
Free Cash Flow 17.752.887696.85164.2248.6939.9632.7926.9122.09
WACC
PV LFCF 44.4633.3224.9718.7114.02
SUM PV LFCF 135.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.51
Free cash flow (t + 1) 22.53
Terminal Value 300
Present Value of Terminal Value 190.48

Intrinsic Value

Enterprise Value 325.97
Net Debt 79.03
Equity Value 246.94
Shares Outstanding 1.59
Equity Value Per Share 155.68