Discounted Cash Flow (DCF) Analysis Levered

Biglari Holdings Inc. (BH)

$164.05

+1.39 (+0.85%)

All numbers are in Millions, Currency in USD

Stock DCF: 230.66 | 164.05 | undervalue

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	809.89	668.84	433.68	366.11	368.23	306.02	254.32	211.36	175.65	145.97
Revenue (%)
Operating Cash Flow	20.68	93.68	117.56	228.77	127.82	86.22	71.65	59.55	49.49	41.13
Operating Cash Flow (%)
Capital Expenditure	-17.80	-17.68	-20.70	-64.55	-29.75	-21.62	-17.97	-14.93	-12.41	-10.31
Capital Expenditure (%)
Free Cash Flow	2.88	76	96.85	164.22	98.08	64.60	53.68	44.61	37.08	30.81

Weighted Average Cost Of Capital

Share price	$ 164.05
Beta	1.581
Diluted Shares Outstanding	1.59
Cost of Debt
Tax Rate	24.92
After-tax Cost of Debt	3.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.199
Total Debt	118.83
Total Equity	260.23
Total Capital	379.05
Debt Weighting	31.35
Equity Weighting	68.65
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	809.89	668.84	433.68	366.11	368.23	306.02	254.32	211.36	175.65	145.97
Operating Cash Flow	20.68	93.68	117.56	228.77	127.82	86.22	71.65	59.55	49.49	41.13
Capital Expenditure	-17.80	-17.68	-20.70	-64.55	-29.75	-21.62	-17.97	-14.93	-12.41	-10.31
Free Cash Flow	2.88	76	96.85	164.22	98.08	64.60	53.68	44.61	37.08	30.81
WACC
PV LFCF						58.97	44.74	33.94	25.75	19.54
SUM PV LFCF										182.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.54
Free cash flow (t + 1)	31.43
Terminal Value	416.83
Present Value of Terminal Value	264.30

Intrinsic Value

Enterprise Value	447.25
Net Debt	81.36
Equity Value	365.89
Shares Outstanding	1.59
Equity Value Per Share	230.66