Discounted Cash Flow (DCF) Analysis Levered
Franchise Group, Inc. (FRG)
$32.1
-0.28 (-0.86%)
All numbers are in Millions, Currency in USD
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 | 173.99 | 174.87 | 132.55 | 2,152.50 | 3,255.20 | 15,881.34 | 77,481.19 | 378,011.73 | 1,844,226.69 | 8,997,530.48 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 32.45 | 27.65 | 17.13 | 241.49 | 105.97 | 1,964.68 | 9,585.20 | 46,763.82 | 228,149.25 | 1,113,084.32 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -15.07 | -8.31 | -3.17 | -41.52 | -46.96 | -609.15 | -2,971.88 | -14,499.07 | -70,737.40 | -345,110.45 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 17.37 | 19.33 | 13.96 | 199.97 | 59.01 | 1,355.53 | 6,613.32 | 32,264.76 | 157,411.85 | 767,973.87 |
Weighted Average Cost Of Capital
| Share price | $ 32.1 |
|---|---|
| Beta | 1.710 |
| Diluted Shares Outstanding | 40.96 |
| Cost of Debt | |
| Tax Rate | -129.62 |
| After-tax Cost of Debt | 5.12% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.712 |
| Total Debt | 2,600.07 |
| Total Equity | 1,314.95 |
| Total Capital | 3,915.02 |
| Debt Weighting | 66.41 |
| Equity Weighting | 33.59 |
| 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 | 173.99 | 174.87 | 132.55 | 2,152.50 | 3,255.20 | 15,881.34 | 77,481.19 | 378,011.73 | 1,844,226.69 | 8,997,530.48 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 32.45 | 27.65 | 17.13 | 241.49 | 105.97 | 1,964.68 | 9,585.20 | 46,763.82 | 228,149.25 | 1,113,084.32 |
| Capital Expenditure | -15.07 | -8.31 | -3.17 | -41.52 | -46.96 | -609.15 | -2,971.88 | -14,499.07 | -70,737.40 | -345,110.45 |
| Free Cash Flow | 17.37 | 19.33 | 13.96 | 199.97 | 59.01 | 1,355.53 | 6,613.32 | 32,264.76 | 157,411.85 | 767,973.87 |
| WACC | ||||||||||
| PV LFCF | 1,176.71 | 5,348.80 | 24,313.30 | 110,517.68 | 502,365.34 | |||||
| SUM PV LFCF | 690,906.63 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.33 |
| Free cash flow (t + 1) | 783,333.34 |
| Terminal Value | 14,696,685.63 |
| Present Value of Terminal Value | 10,318,433.22 |
Intrinsic Value
| Enterprise Value | 11,009,339.85 |
|---|---|
| Net Debt | 2,307.35 |
| Equity Value | 11,007,032.49 |
| Shares Outstanding | 40.96 |
| Equity Value Per Share | 268,698.95 |