Discounted Cash Flow (DCF) Analysis Levered

FTI Consulting, Inc. (FCN)

$169.86

-1.59 (-0.93%)

All numbers are in Millions, Currency in USD

Stock DCF: 428.32 | 169.86 | undervalue

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	1,807.73	2,027.88	2,352.72	2,461.28	2,776.22	3,092.76	3,445.39	3,838.22	4,275.85	4,763.37
Revenue (%)
Operating Cash Flow	147.62	230.67	217.89	327.07	355.48	339.56	378.27	421.40	469.45	522.98
Operating Cash Flow (%)
Capital Expenditure	-32	-32.27	-42.07	-34.87	-68.66	-55.92	-62.29	-69.39	-77.31	-86.12
Capital Expenditure (%)
Free Cash Flow	115.62	198.40	175.81	292.20	286.82	283.64	315.98	352.01	392.14	436.85

Weighted Average Cost Of Capital

Share price	$ 169.86
Beta	0.218
Diluted Shares Outstanding	37.15
Cost of Debt
Tax Rate	21.14
After-tax Cost of Debt	2.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.626
Total Debt	564.01
Total Equity	6,310.13
Total Capital	6,874.14
Debt Weighting	8.20
Equity Weighting	91.80
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	1,807.73	2,027.88	2,352.72	2,461.28	2,776.22	3,092.76	3,445.39	3,838.22	4,275.85	4,763.37
Operating Cash Flow	147.62	230.67	217.89	327.07	355.48	339.56	378.27	421.40	469.45	522.98
Capital Expenditure	-32	-32.27	-42.07	-34.87	-68.66	-55.92	-62.29	-69.39	-77.31	-86.12
Free Cash Flow	115.62	198.40	175.81	292.20	286.82	283.64	315.98	352.01	392.14	436.85
WACC
PV LFCF						271.48	289.46	308.64	329.09	350.89
SUM PV LFCF										1,549.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.48
Free cash flow (t + 1)	445.59
Terminal Value	17,967.42
Present Value of Terminal Value	14,431.78

Intrinsic Value

Enterprise Value	15,981.34
Net Debt	69.53
Equity Value	15,911.82
Shares Outstanding	37.15
Equity Value Per Share	428.32