Discounted Cash Flow (DCF) Analysis Levered

Coty Inc. (COTY)

$8.05

+0.55 (+7.33%)
All numbers are in Millions, Currency in USD
Stock DCF: -6.91 | 8.05 | overvalue

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 7,650.309,3988,648.504,717.804,629.904,254.383,909.323,592.253,300.893,033.16
Revenue (%)
Operating Cash Flow 757.50413.70639.60-50.90318.70234.02215.04197.60181.57166.85
Operating Cash Flow (%)
Capital Expenditure -432.30-446.40-426.60-267.40-173.90-210.65-193.57-177.87-163.44-150.19
Capital Expenditure (%)
Free Cash Flow 325.20-32.70213-318.30144.8023.3721.4719.7318.1316.66

Weighted Average Cost Of Capital

Share price $ 8.05
Beta 2.374
Diluted Shares Outstanding 764.80
Cost of Debt
Tax Rate 16.06
After-tax Cost of Debt 3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.330
Total Debt 5,770.20
Total Equity 6,156.64
Total Capital 11,926.84
Debt Weighting 48.38
Equity Weighting 51.62
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 7,650.309,3988,648.504,717.804,629.904,254.383,909.323,592.253,300.893,033.16
Operating Cash Flow 757.50413.70639.60-50.90318.70234.02215.04197.60181.57166.85
Capital Expenditure -432.30-446.40-426.60-267.40-173.90-210.65-193.57-177.87-163.44-150.19
Free Cash Flow 325.20-32.70213-318.30144.8023.3721.4719.7318.1316.66
WACC
PV LFCF 19.6616.5713.9611.779.92
SUM PV LFCF 78.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.03
Free cash flow (t + 1) 16.99
Terminal Value 241.73
Present Value of Terminal Value 156.89

Intrinsic Value

Enterprise Value 235.26
Net Debt 5,516.70
Equity Value -5,281.44
Shares Outstanding 764.80
Equity Value Per Share -6.91