Discounted Cash Flow (DCF) Analysis Levered

Calavo Growers, Inc. (CVGW)

$24.19

+0.89 (+3.82%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.65 | 24.19 | 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 $ 24.19
Beta 0.686
Diluted Shares Outstanding 17.66
Cost of Debt
Tax Rate -124.22
After-tax Cost of Debt 23.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.844
Total Debt 7.22
Total Equity 427.27
Total Capital 434.49
Debt Weighting 1.66
Equity Weighting 98.34
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 29.6028.3827.2226.1025.03
SUM PV LFCF 136.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.12
Free cash flow (t + 1) 36.01
Terminal Value 703.26
Present Value of Terminal Value 498.61

Intrinsic Value

Enterprise Value 634.93
Net Debt 5.16
Equity Value 629.77
Shares Outstanding 17.66
Equity Value Per Share 35.65