Discounted Cash Flow (DCF) Analysis Levered

Darden Restaurants, Inc. (DRI)

$114.35

+1.23 (+1.09%)
All numbers are in Millions, Currency in USD
Stock DCF: 98.99 | 114.35 | 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 8,080.108,510.407,806.907,196.109,63010,185.1110,772.2311,393.1912,049.9412,744.55
Revenue (%)
Operating Cash Flow 1,001.301,257.20711.301,1941,256.101,342.641,420.031,501.891,588.471,680.03
Operating Cash Flow (%)
Capital Expenditure -418.80-477.90-484.50-270.30-22.20-427.60-452.25-478.32-505.89-535.05
Capital Expenditure (%)
Free Cash Flow 582.50779.30226.80923.701,233.90915.04967.791,023.571,082.581,144.98

Weighted Average Cost Of Capital

Share price $ 114.35
Beta 1.323
Diluted Shares Outstanding 131.80
Cost of Debt
Tax Rate 12.87
After-tax Cost of Debt 4.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.134
Total Debt 4,656.80
Total Equity 15,071.33
Total Capital 19,728.13
Debt Weighting 23.60
Equity Weighting 76.40
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 8,080.108,510.407,806.907,196.109,63010,185.1110,772.2311,393.1912,049.9412,744.55
Operating Cash Flow 1,001.301,257.20711.301,1941,256.101,342.641,420.031,501.891,588.471,680.03
Capital Expenditure -418.80-477.90-484.50-270.30-22.20-427.60-452.25-478.32-505.89-535.05
Free Cash Flow 582.50779.30226.80923.701,233.90915.04967.791,023.571,082.581,144.98
WACC
PV LFCF 847.18829.57812.32795.43778.89
SUM PV LFCF 4,063.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.01
Free cash flow (t + 1) 1,167.88
Terminal Value 19,432.29
Present Value of Terminal Value 13,219.17

Intrinsic Value

Enterprise Value 17,282.56
Net Debt 4,236.20
Equity Value 13,046.36
Shares Outstanding 131.80
Equity Value Per Share 98.99