Discounted Cash Flow (DCF) Analysis Levered

Darden Restaurants, Inc. (DRI)

$119.81

+4.21 (+3.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 94.28 | 119.81 | 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 $ 119.81
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 9.370
Total Debt 4,656.80
Total Equity 15,790.96
Total Capital 20,447.76
Debt Weighting 22.77
Equity Weighting 77.23
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 845.46826.20807.38788.98771.01
SUM PV LFCF 4,039.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.23
Free cash flow (t + 1) 1,167.88
Terminal Value 18,746.08
Present Value of Terminal Value 12,623.28

Intrinsic Value

Enterprise Value 16,662.30
Net Debt 4,236.20
Equity Value 12,426.10
Shares Outstanding 131.80
Equity Value Per Share 94.28