Discounted Cash Flow (DCF) Analysis Levered

Cavco Industries, Inc. (CVCO)

$283

+3.18 (+1.14%)

All numbers are in Millions, Currency in USD

Stock DCF: 386.17 | 283 | 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	871.24	962.75	1,061.77	1,108.05	1,627.16	1,920.03	2,265.62	2,673.42	3,154.61	3,722.41
Revenue (%)
Operating Cash Flow	58.77	32.84	101.74	114.03	144.22	149.35	176.23	207.95	245.38	289.55
Operating Cash Flow (%)
Capital Expenditure	-8.39	-7.64	-14.34	-25.54	-18.65	-25.18	-29.71	-35.06	-41.37	-48.82
Capital Expenditure (%)
Free Cash Flow	50.39	25.20	87.40	88.49	125.57	124.17	146.52	172.89	204.01	240.73

Weighted Average Cost Of Capital

Share price	$ 283
Beta	1.139
Diluted Shares Outstanding	9.26
Cost of Debt
Tax Rate	6.74
After-tax Cost of Debt	2.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.255
Total Debt	24.78
Total Equity	2,621.76
Total Capital	2,646.53
Debt Weighting	0.94
Equity Weighting	99.06
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	871.24	962.75	1,061.77	1,108.05	1,627.16	1,920.03	2,265.62	2,673.42	3,154.61	3,722.41
Operating Cash Flow	58.77	32.84	101.74	114.03	144.22	149.35	176.23	207.95	245.38	289.55
Capital Expenditure	-8.39	-7.64	-14.34	-25.54	-18.65	-25.18	-29.71	-35.06	-41.37	-48.82
Free Cash Flow	50.39	25.20	87.40	88.49	125.57	124.17	146.52	172.89	204.01	240.73
WACC
PV LFCF						114.76	125.15	136.49	148.85	162.33
SUM PV LFCF										687.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.20
Free cash flow (t + 1)	245.55
Terminal Value	3,960.44
Present Value of Terminal Value	2,670.59

Intrinsic Value

Enterprise Value	3,358.17
Net Debt	-219.37
Equity Value	3,577.54
Shares Outstanding	9.26
Equity Value Per Share	386.17