Discounted Cash Flow (DCF) Analysis Levered

Donaldson Company, Inc. (DCI)

$61.49

+2.15 (+3.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 32.52 | 61.49 | overvalue

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	2,734.20	2,844.90	2,581.80	2,853.90	3,306.60	3,481.87	3,666.43	3,860.77	4,065.41	4,280.90
Revenue (%)
Operating Cash Flow	262.90	345.80	387	401.90	252.80	407.29	428.88	451.61	475.55	500.76
Operating Cash Flow (%)
Capital Expenditure	-97.50	-150.70	-124.40	-59	-85.50	-127.68	-134.44	-141.57	-149.08	-156.98
Capital Expenditure (%)
Free Cash Flow	165.40	195.10	262.60	342.90	167.30	279.62	294.44	310.04	326.48	343.78

Weighted Average Cost Of Capital

Share price	$ 61.49
Beta	1.209
Diluted Shares Outstanding	125.20
Cost of Debt
Tax Rate	24.09
After-tax Cost of Debt	1.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.489
Total Debt	648
Total Equity	7,698.55
Total Capital	8,346.55
Debt Weighting	7.76
Equity Weighting	92.24
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	2,734.20	2,844.90	2,581.80	2,853.90	3,306.60	3,481.87	3,666.43	3,860.77	4,065.41	4,280.90
Operating Cash Flow	262.90	345.80	387	401.90	252.80	407.29	428.88	451.61	475.55	500.76
Capital Expenditure	-97.50	-150.70	-124.40	-59	-85.50	-127.68	-134.44	-141.57	-149.08	-156.98
Free Cash Flow	165.40	195.10	262.60	342.90	167.30	279.62	294.44	310.04	326.48	343.78
WACC
PV LFCF						182.65	176.63	170.81	165.18	159.73
SUM PV LFCF										1,202.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.89
Free cash flow (t + 1)	350.66
Terminal Value	5,089.38
Present Value of Terminal Value	3,324.49

Intrinsic Value

Enterprise Value	4,526.52
Net Debt	454.70
Equity Value	4,071.82
Shares Outstanding	125.20
Equity Value Per Share	32.52