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	1,088.76	1,195.78	1,059.37	1,055.83	1,191.07	1,223.52	1,256.85	1,291.09	1,326.27	1,362.40
Revenue (%)
Operating Cash Flow	48.43	72.10	28.88	13.57	50.23	45.77	47.02	48.30	49.62	50.97
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	33.42	55.38	17.53	2.13	40.46	31.70	32.57	33.45	34.36	35.30

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	1,088.76	1,195.78	1,059.37	1,055.83	1,191.07	1,223.52	1,256.85	1,291.09	1,326.27	1,362.40
Operating Cash Flow	48.43	72.10	28.88	13.57	50.23	45.77	47.02	48.30	49.62	50.97
Capital Expenditure	-15	-16.72	-11.34	-11.44	-9.77	-14.07	-14.46	-14.85	-15.25	-15.67
Free Cash Flow	33.42	55.38	17.53	2.13	40.46	31.70	32.57	33.45	34.36	35.30
WACC
PV LFCF						29.74	28.66	27.62	26.61	25.64
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