Discounted Cash Flow (DCF) Analysis Levered

Central Garden & Pet Company (CENTA)

$34.585

+0.23 (+0.68%)

All numbers are in Millions, Currency in USD

Stock DCF: 86.18 | 34.585 | 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	2,215.36	2,383.01	2,695.51	3,303.68	3,338.59	3,708.34	4,119.04	4,575.22	5,081.93	5,644.76
Revenue (%)
Operating Cash Flow	114.11	204.97	264.27	250.84	-34.03	223.47	248.21	275.70	306.24	340.16
Operating Cash Flow (%)
Capital Expenditure	-37.85	-31.58	-43.05	-80.33	-115.20	-77.97	-86.61	-96.20	-106.85	-118.69
Capital Expenditure (%)
Free Cash Flow	76.27	173.40	221.22	170.51	-149.23	145.49	161.61	179.51	199.39	221.47

Weighted Average Cost Of Capital

Share price	$ 34.585
Beta	0.700
Diluted Shares Outstanding	55.25
Cost of Debt
Tax Rate	23.51
After-tax Cost of Debt	3.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.892
Total Debt	1,382.40
Total Equity	1,910.75
Total Capital	3,293.15
Debt Weighting	41.98
Equity Weighting	58.02
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	2,215.36	2,383.01	2,695.51	3,303.68	3,338.59	3,708.34	4,119.04	4,575.22	5,081.93	5,644.76
Operating Cash Flow	114.11	204.97	264.27	250.84	-34.03	223.47	248.21	275.70	306.24	340.16
Capital Expenditure	-37.85	-31.58	-43.05	-80.33	-115.20	-77.97	-86.61	-96.20	-106.85	-118.69
Free Cash Flow	76.27	173.40	221.22	170.51	-149.23	145.49	161.61	179.51	199.39	221.47
WACC
PV LFCF						138.11	145.61	153.52	161.87	170.66
SUM PV LFCF										769.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.35
Free cash flow (t + 1)	225.90
Terminal Value	6,743.22
Present Value of Terminal Value	5,196.30

Intrinsic Value

Enterprise Value	5,966.07
Net Debt	1,204.95
Equity Value	4,761.12
Shares Outstanding	55.25
Equity Value Per Share	86.18