Discounted Cash Flow (DCF) Analysis Levered

Cars.com Inc. (CARS)

$9.71

-0.45 (-4.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 14.75 | 9.71 | 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 626.26662.13606.68547.50623.68626.04628.41630.79633.17635.56
Revenue (%)
Operating Cash Flow 185.93163.55101.48138.62138148.45149.01149.57150.14150.71
Operating Cash Flow (%)
Capital Expenditure -32.77-14.23-21.26-16.71-19.19-21.31-21.39-21.47-21.55-21.63
Capital Expenditure (%)
Free Cash Flow 153.16149.3180.23121.90118.81127.14127.62128.11128.59129.08

Weighted Average Cost Of Capital

Share price $ 9.71
Beta 2.028
Diluted Shares Outstanding 71.34
Cost of Debt
Tax Rate 18.60
After-tax Cost of Debt 6.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.430
Total Debt 466.32
Total Equity 692.68
Total Capital 1,159.01
Debt Weighting 40.23
Equity Weighting 59.77
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 626.26662.13606.68547.50623.68626.04628.41630.79633.17635.56
Operating Cash Flow 185.93163.55101.48138.62138148.45149.01149.57150.14150.71
Capital Expenditure -32.77-14.23-21.26-16.71-19.19-21.31-21.39-21.47-21.55-21.63
Free Cash Flow 153.16149.3180.23121.90118.81127.14127.62128.11128.59129.08
WACC
PV LFCF 115.43105.1995.8687.3579.60
SUM PV LFCF 483.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.15
Free cash flow (t + 1) 131.66
Terminal Value 1,615.45
Present Value of Terminal Value 996.26

Intrinsic Value

Enterprise Value 1,479.68
Net Debt 427.25
Equity Value 1,052.43
Shares Outstanding 71.34
Equity Value Per Share 14.75