Discounted Cash Flow (DCF) Analysis Levered

Calavo Growers, Inc. (CVGW)

$32.27

-0.75 (-2.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 36.39 | 32.27 | 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 1,088.761,195.781,059.371,055.831,191.071,223.521,256.851,291.091,326.271,362.40
Revenue (%)
Operating Cash Flow 48.4372.1028.8813.5750.2345.7747.0248.3049.6250.97
Operating Cash Flow (%)
Capital Expenditure -15-16.72-11.34-11.44-9.77-14.07-14.46-14.85-15.25-15.67
Capital Expenditure (%)
Free Cash Flow 33.4255.3817.532.1340.4631.7032.5733.4534.3635.30

Weighted Average Cost Of Capital

Share price $ 32.27
Beta 0.698
Diluted Shares Outstanding 17.66
Cost of Debt
Tax Rate -124.22
After-tax Cost of Debt 2.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.077
Total Debt 66.29
Total Equity 569.99
Total Capital 636.27
Debt Weighting 10.42
Equity Weighting 89.58
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 1,088.761,195.781,059.371,055.831,191.071,223.521,256.851,291.091,326.271,362.40
Operating Cash Flow 48.4372.1028.8813.5750.2345.7747.0248.3049.6250.97
Capital Expenditure -15-16.72-11.34-11.44-9.77-14.07-14.46-14.85-15.25-15.67
Free Cash Flow 33.4255.3817.532.1340.4631.7032.5733.4534.3635.30
WACC
PV LFCF 29.7428.6627.6226.6125.64
SUM PV LFCF 138.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.60
Free cash flow (t + 1) 36.01
Terminal Value 782.76
Present Value of Terminal Value 568.65

Intrinsic Value

Enterprise Value 706.92
Net Debt 64.23
Equity Value 642.69
Shares Outstanding 17.66
Equity Value Per Share 36.39