Discounted Cash Flow (DCF) Analysis Levered
Darden Restaurants, Inc. (DRI)
$163.225
-0.14 (-0.08%)
All numbers are in Millions, Currency in USD
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 | 8,080.10 | 8,510.40 | 7,806.90 | 7,196.10 | 9,630 | 10,185.11 | 10,772.23 | 11,393.19 | 12,049.94 | 12,744.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,001.30 | 1,257.20 | 711.30 | 1,194 | 1,256.10 | 1,342.64 | 1,420.03 | 1,501.89 | 1,588.47 | 1,680.03 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -418.80 | -477.90 | -484.50 | -270.30 | -402.50 | -508.04 | -537.33 | -568.30 | -601.06 | -635.71 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 582.50 | 779.30 | 226.80 | 923.70 | 853.60 | 834.59 | 882.70 | 933.59 | 987.40 | 1,044.32 |
Weighted Average Cost Of Capital
| Share price | $ 163.225 |
|---|---|
| Beta | 1.223 |
| Diluted Shares Outstanding | 129 |
| Cost of Debt | |
| Tax Rate | 12.87 |
| After-tax Cost of Debt | 1.25% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.538 |
| Total Debt | 4,887.30 |
| Total Equity | 21,056.03 |
| Total Capital | 25,943.33 |
| Debt Weighting | 18.84 |
| Equity Weighting | 81.16 |
| 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 | 8,080.10 | 8,510.40 | 7,806.90 | 7,196.10 | 9,630 | 10,185.11 | 10,772.23 | 11,393.19 | 12,049.94 | 12,744.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,001.30 | 1,257.20 | 711.30 | 1,194 | 1,256.10 | 1,342.64 | 1,420.03 | 1,501.89 | 1,588.47 | 1,680.03 |
| Capital Expenditure | -418.80 | -477.90 | -484.50 | -270.30 | -402.50 | -508.04 | -537.33 | -568.30 | -601.06 | -635.71 |
| Free Cash Flow | 582.50 | 779.30 | 226.80 | 923.70 | 853.60 | 834.59 | 882.70 | 933.59 | 987.40 | 1,044.32 |
| WACC | ||||||||||
| PV LFCF | 772.92 | 757.06 | 741.52 | 726.31 | 711.41 | |||||
| SUM PV LFCF | 3,709.21 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.98 |
| Free cash flow (t + 1) | 1,065.21 |
| Terminal Value | 17,812.84 |
| Present Value of Terminal Value | 12,134.35 |
Intrinsic Value
| Enterprise Value | 15,843.56 |
|---|---|
| Net Debt | 4,466.70 |
| Equity Value | 11,376.86 |
| Shares Outstanding | 129 |
| Equity Value Per Share | 88.19 |