Discounted Cash Flow (DCF) Analysis Levered

Donnelley Financial Solutions, Inc. (DFIN)

$43.81

+0.81 (+1.88%)
All numbers are in Millions, Currency in USD
Stock DCF: 18.59 | 43.81 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,004.90963874.70894.50993.30993.23993.15993.08993992.93
Revenue (%)
Operating Cash Flow 91.4066.3054.50154.20180114.36114.35114.34114.34114.33
Operating Cash Flow (%)
Capital Expenditure -27.80-37.10-44.80-31.10-42.30-38.69-38.69-38.68-38.68-38.68
Capital Expenditure (%)
Free Cash Flow 63.6029.209.70123.10137.7075.6775.6775.6675.6675.65

Weighted Average Cost Of Capital

Share price $ 43.81
Beta 1.908
Diluted Shares Outstanding 33.90
Cost of Debt
Tax Rate 26.24
After-tax Cost of Debt 8.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.790
Total Debt 181.30
Total Equity 1,485.16
Total Capital 1,666.46
Debt Weighting 10.88
Equity Weighting 89.12
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,004.90963874.70894.50993.30993.23993.15993.08993992.93
Operating Cash Flow 91.4066.3054.50154.20180114.36114.35114.34114.34114.33
Capital Expenditure -27.80-37.10-44.80-31.10-42.30-38.69-38.69-38.68-38.68-38.68
Free Cash Flow 63.6029.209.70123.10137.7075.6775.6775.6675.6675.65
WACC
PV LFCF 67.946154.7649.1644.13
SUM PV LFCF 276.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.38
Free cash flow (t + 1) 77.16
Terminal Value 822.64
Present Value of Terminal Value 479.93

Intrinsic Value

Enterprise Value 756.92
Net Debt 126.80
Equity Value 630.12
Shares Outstanding 33.90
Equity Value Per Share 18.59