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	1,088.76	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	$ 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	1,088.76	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						29.60	28.38	27.22	26.10	25.03
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