Discounted Cash Flow (DCF) Analysis Levered

Donnelley Financial Solutions, Inc. (DFIN)

$63.57

-0.73 (-1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 19.17 | 63.57 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 874.70894.50993.30833.60797.20782.98769.01755.29741.82728.59
Revenue (%)
Operating Cash Flow 54.50154.20180150.20124117.70115.60113.54111.52109.53
Operating Cash Flow (%)
Capital Expenditure -44.80-31.10-42.30-54.20-61.80-42.45-41.70-40.95-40.22-39.51
Capital Expenditure (%)
Free Cash Flow 9.70123.10137.709662.2075.2573.9172.5971.2970.02

Weighted Average Cost Of Capital

Share price $ 63.57
Beta 1.516
Diluted Shares Outstanding 30.60
Cost of Debt
Tax Rate 19.41
After-tax Cost of Debt 9.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.478
Total Debt 150.60
Total Equity 1,945.24
Total Capital 2,095.84
Debt Weighting 7.19
Equity Weighting 92.81
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 874.70894.50993.30833.60797.20782.98769.01755.29741.82728.59
Operating Cash Flow 54.50154.20180150.20124117.70115.60113.54111.52109.53
Capital Expenditure -44.80-31.10-42.30-54.20-61.80-42.45-41.70-40.95-40.22-39.51
Free Cash Flow 9.70123.10137.709662.2075.2573.9172.5971.2970.02
WACC
PV LFCF 67.5859.6252.5946.3940.92
SUM PV LFCF 267.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.34
Free cash flow (t + 1) 71.42
Terminal Value 764.68
Present Value of Terminal Value 446.91

Intrinsic Value

Enterprise Value 714.02
Net Debt 127.50
Equity Value 586.52
Shares Outstanding 30.60
Equity Value Per Share 19.17