Discounted Cash Flow (DCF) Analysis Levered

CSW Industrials, Inc. (CSWI)

$182.53

+1.42 (+0.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 269.26 | 182.53 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	350.15	385.87	419.20	626.43	757.90	927.03	1,133.90	1,386.92	1,696.41	2,074.97
Revenue (%)
Operating Cash Flow	59.71	69.90	66.25	69.09	121.45	144.66	176.94	216.43	264.73	323.80
Operating Cash Flow (%)
Capital Expenditure	-7.51	-11.44	-8.83	-15.65	-13.95	-21.43	-26.21	-32.06	-39.21	-47.96
Capital Expenditure (%)
Free Cash Flow	52.20	58.46	57.42	53.44	107.50	123.24	150.74	184.37	225.52	275.84

Weighted Average Cost Of Capital

Share price	$ 182.53
Beta	0.727
Diluted Shares Outstanding	15.55
Cost of Debt
Tax Rate	23.41
After-tax Cost of Debt	4.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.686
Total Debt	253
Total Equity	2,837.61
Total Capital	3,090.61
Debt Weighting	8.19
Equity Weighting	91.81
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	350.15	385.87	419.20	626.43	757.90	927.03	1,133.90	1,386.92	1,696.41	2,074.97
Operating Cash Flow	59.71	69.90	66.25	69.09	121.45	144.66	176.94	216.43	264.73	323.80
Capital Expenditure	-7.51	-11.44	-8.83	-15.65	-13.95	-21.43	-26.21	-32.06	-39.21	-47.96
Free Cash Flow	52.20	58.46	57.42	53.44	107.50	123.24	150.74	184.37	225.52	275.84
WACC
PV LFCF						114.77	130.73	148.91	169.62	193.21
SUM PV LFCF										757.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.38
Free cash flow (t + 1)	281.36
Terminal Value	5,229.66
Present Value of Terminal Value	3,663.16

Intrinsic Value

Enterprise Value	4,420.41
Net Debt	234.54
Equity Value	4,185.86
Shares Outstanding	15.55
Equity Value Per Share	269.26