Discounted Cash Flow (DCF) Analysis Levered

ESCO Technologies Inc. (ESE)

$96.6

-1.74 (-1.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.20 | 96.6 | 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 771.58812.97732.91715.44857.50885.35914.10943.78974.431,006.07
Revenue (%)
Operating Cash Flow 93.26105.1482.28123.14135.27122.59126.57130.68134.92139.31
Operating Cash Flow (%)
Capital Expenditure -30.16-45.57-41.13-35.49-45.01-44.86-46.32-47.82-49.38-50.98
Capital Expenditure (%)
Free Cash Flow 63.1059.5741.1587.6590.2677.7380.2582.8685.5588.33

Weighted Average Cost Of Capital

Share price $ 96.6
Beta 1.118
Diluted Shares Outstanding 26.23
Cost of Debt
Tax Rate 22.66
After-tax Cost of Debt 2.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.989
Total Debt 177.85
Total Equity 2,533.34
Total Capital 2,711.19
Debt Weighting 6.56
Equity Weighting 93.44
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 771.58812.97732.91715.44857.50885.35914.10943.78974.431,006.07
Operating Cash Flow 93.26105.1482.28123.14135.27122.59126.57130.68134.92139.31
Capital Expenditure -30.16-45.57-41.13-35.49-45.01-44.86-46.32-47.82-49.38-50.98
Free Cash Flow 63.1059.5741.1587.6590.2677.7380.2582.8685.5588.33
WACC
PV LFCF 71.6168.1264.8061.6458.63
SUM PV LFCF 324.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.54
Free cash flow (t + 1) 90.09
Terminal Value 1,377.57
Present Value of Terminal Value 914.46

Intrinsic Value

Enterprise Value 1,239.26
Net Debt 80.13
Equity Value 1,159.13
Shares Outstanding 26.23
Equity Value Per Share 44.20