Discounted Cash Flow (DCF) Analysis Levered

Carriage Services, Inc. (CSV)

$26.16

-0.38 (-1.43%)

All numbers are in Millions, Currency in USD

Stock DCF: 120.55 | 26.16 | 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	267.99	274.11	329.45	375.89	370.17	402.61	437.88	476.25	517.98	563.36
Revenue (%)
Operating Cash Flow	48.99	43.22	82.91	84.25	61.02	79	85.92	93.45	101.64	110.55
Operating Cash Flow (%)
Capital Expenditure	-13.53	-15.38	-15.20	-24.88	-26.08	-23.30	-25.34	-27.56	-29.98	-32.60
Capital Expenditure (%)
Free Cash Flow	35.47	27.84	67.72	59.36	34.94	55.70	60.58	65.89	71.66	77.94

Weighted Average Cost Of Capital

Share price	$ 26.16
Beta	0.814
Diluted Shares Outstanding	15.71
Cost of Debt
Tax Rate	27.65
After-tax Cost of Debt	3.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.478
Total Debt	612.75
Total Equity	410.97
Total Capital	1,023.72
Debt Weighting	59.85
Equity Weighting	40.15
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	267.99	274.11	329.45	375.89	370.17	402.61	437.88	476.25	517.98	563.36
Operating Cash Flow	48.99	43.22	82.91	84.25	61.02	79	85.92	93.45	101.64	110.55
Capital Expenditure	-13.53	-15.38	-15.20	-24.88	-26.08	-23.30	-25.34	-27.56	-29.98	-32.60
Free Cash Flow	35.47	27.84	67.72	59.36	34.94	55.70	60.58	65.89	71.66	77.94
WACC
PV LFCF						53.14	55.13	57.20	59.34	61.57
SUM PV LFCF										286.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.83
Free cash flow (t + 1)	79.50
Terminal Value	2,809.29
Present Value of Terminal Value	2,219.06

Intrinsic Value

Enterprise Value	2,505.43
Net Debt	611.58
Equity Value	1,893.85
Shares Outstanding	15.71
Equity Value Per Share	120.55