Discounted Cash Flow (DCF) Analysis Levered

Darden Restaurants, Inc. (DRI)

$116.25

-0.42 (-0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 52.61 | 116.25 | 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 7,170.208,080.108,510.407,806.907,196.107,230.747,265.547,300.517,335.657,370.95
Revenue (%)
Operating Cash Flow 899.901,001.301,257.20711.301,194946.05950.60955.18959.78964.40
Operating Cash Flow (%)
Capital Expenditure -318.30-418.80-477.90-484.50-270.30-364.43-366.18-367.95-369.72-371.50
Capital Expenditure (%)
Free Cash Flow 581.60582.50779.30226.80923.70581.62584.42587.23590.06592.90

Weighted Average Cost Of Capital

Share price $ 116.25
Beta 1.320
Diluted Shares Outstanding 131.80
Cost of Debt
Tax Rate -9.16
After-tax Cost of Debt 1.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.016
Total Debt 5,202.60
Total Equity 15,321.75
Total Capital 20,524.35
Debt Weighting 25.35
Equity Weighting 74.65
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 7,170.208,080.108,510.407,806.907,196.107,230.747,265.547,300.517,335.657,370.95
Operating Cash Flow 899.901,001.301,257.20711.301,194946.05950.60955.18959.78964.40
Capital Expenditure -318.30-418.80-477.90-484.50-270.30-364.43-366.18-367.95-369.72-371.50
Free Cash Flow 581.60582.50779.30226.80923.70581.62584.42587.23590.06592.90
WACC
PV LFCF 507.54476.39447.16419.72393.97
SUM PV LFCF 2,403.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.05
Free cash flow (t + 1) 604.76
Terminal Value 11,975.41
Present Value of Terminal Value 8,518.38

Intrinsic Value

Enterprise Value 10,921.42
Net Debt 3,987.90
Equity Value 6,933.52
Shares Outstanding 131.80
Equity Value Per Share 52.61