Discounted Cash Flow (DCF) Analysis Levered

Cars.com Inc. (CARS)

$16.94

-0.23 (-1.34%)

All numbers are in Millions, Currency in USD

Stock DCF: 10.98 | 16.94 | 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	662.13	606.68	547.50	623.68	653.88	654.90	655.93	656.95	657.98	659.02
Revenue (%)
Operating Cash Flow	163.55	101.48	138.62	138	128.51	142.15	142.37	142.59	142.82	143.04
Operating Cash Flow (%)
Capital Expenditure	-14.23	-21.26	-16.71	-19.19	-19.71	-19.38	-19.41	-19.44	-19.47	-19.50
Capital Expenditure (%)
Free Cash Flow	149.31	80.23	121.90	118.81	108.80	122.77	122.96	123.15	123.34	123.54

Weighted Average Cost Of Capital

Share price	$ 16.94
Beta	2.022
Diluted Shares Outstanding	69.65
Cost of Debt
Tax Rate	23.79
After-tax Cost of Debt	5.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.981
Total Debt	472.38
Total Equity	1,179.85
Total Capital	1,652.24
Debt Weighting	28.59
Equity Weighting	71.41
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	662.13	606.68	547.50	623.68	653.88	654.90	655.93	656.95	657.98	659.02
Operating Cash Flow	163.55	101.48	138.62	138	128.51	142.15	142.37	142.59	142.82	143.04
Capital Expenditure	-14.23	-21.26	-16.71	-19.19	-19.71	-19.38	-19.41	-19.44	-19.47	-19.50
Free Cash Flow	149.31	80.23	121.90	118.81	108.80	122.77	122.96	123.15	123.34	123.54
WACC
PV LFCF						110	98.71	88.58	79.49	71.33
SUM PV LFCF										448.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.61
Free cash flow (t + 1)	126.01
Terminal Value	1,311.22
Present Value of Terminal Value	757.11

Intrinsic Value

Enterprise Value	1,205.22
Net Debt	440.67
Equity Value	764.55
Shares Outstanding	69.65
Equity Value Per Share	10.98