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	771.58	812.97	732.91	715.44	857.50	885.35	914.10	943.78	974.43	1,006.07
Revenue (%)
Operating Cash Flow	93.26	105.14	82.28	123.14	135.27	122.59	126.57	130.68	134.92	139.31
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	63.10	59.57	41.15	87.65	90.26	77.73	80.25	82.86	85.55	88.33

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	771.58	812.97	732.91	715.44	857.50	885.35	914.10	943.78	974.43	1,006.07
Operating Cash Flow	93.26	105.14	82.28	123.14	135.27	122.59	126.57	130.68	134.92	139.31
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	63.10	59.57	41.15	87.65	90.26	77.73	80.25	82.86	85.55	88.33
WACC
PV LFCF						71.61	68.12	64.80	61.64	58.63
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